Question

What does doubling the coupon of a bond do to its yield?

Answer 1

I honestly don't know much about this.
@dude ?

Answer 2

@nevaehnm - Is there answer choices or anything to further assist you?

Answer 3

halves the yield
doubles the yield
quadruples the yield
quintuplets the yield

Answer 4

Thank you. Now, do you have any ideas/guesses?

Answer 5

i think its a or b

Answer 6

A is incorrect, B is correct. Do you know why?

Answer 7

nope

Answer 8

it will double the yield, though in practise the price will drop to level that out