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Busıness Fınance I
Busıness Fınance I Deneme Sınavı
Busıness Fınance I Deneme Sınavı Sorusu #1138266
Busıness Fınance I Deneme Sınavı Sorusu #1138266
Even though coupon interest rates are fixed, bond values still fluctuate with the changes in market
interest rates. Which one of the following is the main reason for this?
calculation errors |
fluctuations on the interest rate in the market |
market failures |
transaction fees |
intermediation commissions |
Yanıt Açıklaması:
Even though coupon interest rates are fixed, bond values still fluctuate with the changes in market
interest rates. Bonds exhibit interest rate risk, which is the risk that the return from the bond will change according to changes in the interest rates.
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