Quiz Ch 07 – T/F Bond Pricing Dynamics Based on Market Interest Rates
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or false: For a bond with a $1,000 par value, $100 annual interest, 5-year maturity, non-callable feature, and no expected default, a premium will occur when market rates are below 10%, while a discount will arise if rates surpass 10%.