easy · Principles of Finance valuation

If a bond's coupon rate is 5% and the market yield increases from 5% to 6%, what happens to the present value of the bond's face value?

  1. It decreases
  2. It increases
  3. It equals the coupon payment
  4. It remains unchanged

Sign up free to see the explanation and track your rank →

More Principles of Finance valuation practice

KomFi Academy — Stop doomscrolling. Get KomFi.

Build your intelligence, anytime, anywhere.

KomFi Academy is a curated training platform with 46,000+ practice questions, 20,000+ flashcards, on-demand video lectures, podcasts, and 4K slide decks across the topics serious professionals study: GMAT, LSAT, MCAT, Investment Banking, Private Equity (LBOs & PE math), Private Credit, Quantitative Finance, Financial Accounting, Asset- Backed Securities, Volume Profile Analysis, Order Flow Trading, Market Microstructure, Volume Spread Analysis, Elliott Wave Theory, Volume-Price Analysis, and Public Offering Frameworks.

What's inside

Topics

View pricing · Read testimonials