Bond prices and interest rates move in the same direction

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Reference no: EM131089422

Which of the following statements is correct?

a."Everything else held constant, the market price of a discount bond will increase and approach the bond's par value as the maturity date approaches. "

b. "Bond prices and interest rates move in the same direction, i.e., if interest rates rise, so will bond prices"

c. "Everything else equal, a convertible bond should have a lower price than a non-convertible bond."

d. "Everything else equal, a callable bond should have a higher price than a noncallable bond."

Reference no: EM131089422

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