CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

As the discount rate ______ relative to the stated coupon rate, the price of the bond ______ relative to the par value.

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
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