To answer questions, assume “All else equal”
6. An increase in the interest rate on a
mortgage will cause an increase/decrease/no change in the mortgage
payment, all else equal.
7. If the payout ratio increases, then
the stock’s price will increase/decrease/not change.
8. If the price of a stock increases, the
dividend yield will increase/decrease/not change.
9. If the yield on a bond decreases, the
value of the bond should increase/decrease/not change.
10. A bond that has a coupon rate of 8% should have...