You have a bond that pays 60 per year in coupon payments., Ask an Expert

Economics

You have a bond that pays $ 60 per year in coupon payments. Which of the following would result in an increase in the price of your bond?

a. the price of a share of stock in the company falls

b. the likelihood that the firm issuing your bond will default on debt increases

c. coupon payments on newly-issued bonds fall to $ 50 per year

d. coupon payments on newly-issued bonds rise to $80 per year.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M964925

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