Interest rates have increased since the issuance of bonds

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Reference no: EM131462577

Consider the following statements. Are these statements true or false? Explain. Statement 1: “Callable bonds are more likely to be called if interest rates have increased since the issuance of the bonds.” Statement 2: “When trading bonds with coupons, the bond seller must pay a portion of the next coupon, representing accrued interest, to the bond buyer.”

Reference no: EM131462577

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