Solved: What happens to bond when market yields decrease, Finance Basics

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What happens to bond when market yields decrease

Question A 10-year corporate bond is issued with a face value of $100,000, paying interest of $2,500. semi-annually. If market yields decrease shortly after the T-bond is issued, what happens to the bond's:

a. price?

b. coupon rate?

c. yield to maturity?

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Finance Basics: What happens to bond when market yields decrease

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Finance Basics: What happens to bond when market yields decrease

Reference No:- TGS01820225

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