Should an investor who thinks interest rates are going down seek low or high coupon rate bonds Relate your answer to duration and price sensitivity ...

He or she should seek low coupon rate bonds w ...

Should an investor who thinks interest rates are going down seek low or high coupon rate bonds?

Question:

Should an investor who thinks interest rates are going down seek low or high rate bonds? Relate your answer to duration and price sensitivity.
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...