Finance Assignment | Professional Writing

Which of the following statements is TRUE? If interest rates increase after you purchase a bond, the value of the bond will decline. If interest rates increase after you purchase a bond, the coupon amount will decline.

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Zero-Coupon Bonds have lower price interest rate) risk than high coupon bonds. Long term bonds have higher reinvestment risk than short term bonds. A bondholder is an owner of the corporation that issued the bond.

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