4. Which of the following statements about bonds is most correct?

a. The coupon rate on bond changes periodically on most long-term bonds,

b. The current yield on a bond is fixed over the life of the bond.

c. The yield to maturity on a bond is fixed as long as the bond is held until maturity.

d. The price of a bond increases as the market interest rates increase.

Question

4. Which of the following statements about bonds is most correct?

a. The coupon rate on bond changes periodically on most long-term bonds,

b. The current yield on a bond is fixed over the life of the bond.

c. The yield to maturity on a bond is fixed as long as the bond is held until maturity.

d. The price of a bond increases as the market interest rates increase.

anonymous · Answer

c.

anonymous · Answer

None!
a. No
b. Depends on bond price which depends on market interest rate which changes overtime
c. Depends on market interest rate
d. The opposite

anonymous · Answer

if held to maturity, then market rates dont matter. you get the coupons plus/minus the discount/premium you bought it at. so c

matthewrlee · Answer

The best Bond was Sean Connery.