Quiz Ch 07 – Bond Price Movement and Yield Change

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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For a 10-year Treasury bond with an 8% coupon and an 8-year Treasury bond with a 10% coupon, assuming both are noncallable and have the same YTM, if the YTM increases equally for both bonds, which statement is TRUE?

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