Falling interest rate leads change to bondholder income which is

Related MCQs

• The contract between a bond issuer and a bondholder is called:
• “The yield curve will be downward sloping if the market believes that future short-term interest rates will be less than current short-term interest rate.” This statement about the term structure of interest rates is most consistent with the:
• If coupon rate is equal to going rate of interest then bond will be sold
• These are instruments, which give a fixed rate of interest for a fixed period of maturity.
• These are instruments, which give a fixed rate of interest for a fixed period of maturity.
• The present interest rate of PPF is
• This is the interest rate that every debenture /bond carries on its face value and is fixed at the time of issue
• Interest rate risk is associated with
• Required rate of return>Coupon rate, the bond will be valued at
• Long period of bond maturity leads to