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What will happen to the bond's price and to its yield to maturity?



 
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What will happen to the bond's price and to its yield to maturity? #1 (permalink) Tue Aug 25, 2009 2:43 am   What will happen to the bond's price and to its yield to maturity?
 

Business English Lesson, Advanced Level

ESL/EFL Test #351 "Business Buzzwords: High Valuation", question 1

High valuation means a bigger potential price fall for a ......... stock.

(a) bungee
(b) parachute
(c) submarine
(d) torpedo

Business English Lesson, Advanced Level

ESL/EFL Test #351 "Business Buzzwords: High Valuation", answer 1

High valuation means a bigger potential price fall for a torpedo stock.

Correct answer: (d) torpedo
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If interest rates in the economy rise after a bond has been issued, what will happen to the bond's price and to its yield to maturity?

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