(Solution) If A 10% Government Bond's Yield Changes From 9% To 11% What Will Be The Effect On Its Price? | Snapessays.com


(Solution) If a 10% government bond's yield changes from 9% to 11% what will be the effect on its price?


If a 10% government bond's yield changes from 9% to 11% what will be the effect on its price?

 

??The bond will still sell at a premium but not so much as before.

 

??The bond will no longer sell at a discount and will instead trade at a premium.

 

??The bond will no longer sell at a premium but will instead trade at a discount.

 

??Nothing will happen to the price of the bond as that is fixed at issue.

 


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This question was answered on: May 23, 2022

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