- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 6. Fixed-Income Bond Valuation: Prices and Yields
- Subject 3. Relationships between Bond Price and Bond Characteristics
CFA Practice Question
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
Correct Answer: C
User Contributed Comments 2
| User | Comment |
|---|---|
| mrushdi | that is a good one. |
| ChristinaJ | yield and price of bond has an inverse relationship |