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Prices of bonds will be increased if interest rates

This question belongs to Commerce Financial Management
Financial Management
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Prices of bonds will be increased if interest rates

Answer & Solution
Correct Answer: Option D
Prices of bonds will be increased if interest rates declines. Bond price is the present discounted value of future cash stream generated by a bond. It refers to the sum of the present values of all likely coupon payments plus the present value of the par value at maturity.
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