问题如下:
When market interest rate is 7%, a company issues a $1 million bond with maturity of 3-year, a 5% coupon rate, and annual interest payments. After the bond is issued, the maket interest rate increases.
In an analyst's view, which of the following statements is the most correct ?
选项:
A.The debt-to-equity ratio will increase.
B.The debt-to-equity ratio will decrease.
C.The debt-to-equity ratio will stay the same.
解释:
B is correct.
When market interest rates increase, the fair value of a bond with a fixed coupon rate decreases and the company’s economic liability may be lower than its reported debt.
For analytical purposes, in debt-to-equity ratio, lower debt and higher equity will decrease its value.
想问这个知识点在哪儿啊?是不是 fixed income 里的?我直接学的强化,视频里老师一直提说:你们在 fixed income 里学过 blablabla。我可能还没看过那块所以不太懂?