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QUESTION 11 Other things remaining the same, if the discount rate goes down,...

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Question

Accounting

QUESTION 11

  1. Other things remaining the same, if the discount rate goes down, the value of a bond

    a.

    does not change
    b.

    goes up
    c.

    goes down
    d.

    any of the above is possible

  2. For a par bond

    a.

    B0 is less than M
    b.

    B0 is greater than M
    c.

    B0 is equal to M
    d.

    none of the above

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