Rank the durations or effective durations of the following pairs of bonds a Bond A is an 8 coupon bond, with a 20 year time to maturity selling at par value Bond B is an 8 coupon bond, with a 20 year maturity time selling below par value b Bond A is a 20 year noncallable coupon bond with a coupon r...

a Bond B has a higher yield to maturity than bond A since its coupon payments and maturity are e ...

Rank the durations or effective durations of the following pairs of bonds: a. Bond A is an

Question:

Rank the durations or effective durations of the following pairs of bonds:
a. Bond A is an 8% bond, with a 20-year time to selling at par value. Bond B is an 8% bond, with a 20-year time selling below par value.
b. Bond A is a 20-year noncallable bond with a rate of 8%, selling at par. Bond B is a 20-year callable bond with a rate of 9%, also selling at par.

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... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...