Question: 1) For a given change in interest rates, which type of bonds would change the LEAST in terms of price? a) low coupon, long maturity
1) For a given change in interest rates, which type of bonds would change the LEAST in terms of price?
a) low coupon, long maturity bonds
b) high coupon, short maturity bonds
2) Which of the following is true?
a) The lower the coupon rate on a bond, the more sensitive the price is to a change in interest rates.
b) Bond prices move in the same direction as interest rates.
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