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Basic Question 2 of 19
As the discount rate ______ relative to the stated coupon rate, the price of the bond ______ relative to the par value.
B. decreases; stays constant
C. decreases; increases
A. increases; increases
B. decreases; stays constant
C. decreases; increases
User Contributed Comments 2
| User | Comment |
|---|---|
| mrushdi | that is a good one. |
| ChristinaJ | yield and price of bond has an inverse relationship |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
identify the relationships among a bond's price, coupon rate, maturity, and yield-to-maturity
CFA® 2024 Level I Curriculum, Volume 4, Module 6.