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If All Other Variables Remain Constant, Then an Increase in the Coupon

Question 27

Multiple Choice

If all other variables remain constant, then an increase in the coupon rate will cause which of the following to also increase?
I. face value
II. market value
III. yield to maturity
IV. current yield


A) I and II only
B) III and IV only
C) I, II, and III only
D) II, III, and IV only
E) I, II, III, and IV

Correct Answer:

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