Bond prices decrease when inflation increases.

Related MCQs

• Lara wants to buy a bond and hold it until it matures. Which of the following must occur if Lara is to realize a holding period return equal to the bond’s yield to maturity?
• A bond that makes no coupon payments (and thus is initially priced at a deep discount to par value) is called a_______ bond.
• The annual coupon of a bond divided by its face value is called the bond:
• While bond prices fluctuate,
• This is the interest rate that every debenture /bond carries on its face value and is fixed at the time of issue
• Goverenment bond is a
• Goverenment bond is a
• The market price of a bond depends on the
• The value of a bond and debenture is
• Required rate of return>Coupon rate, the bond will be valued at