a. True or false: A bond prices sensitivity to interest rate changes increases at an increasing rate

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a. True or false: A bond price’s sensitivity to interest rate changes increases at an increasing rate as maturity lengthens.

b. Which is more sensitive to an interest rate shift: a low-coupon bond or a high-coupon bond?ppens to a bond’s duration as its maturity grows?

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Fundamentals Of Investments Valuation And Management

ISBN: 9781266824012

10th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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