Question: 2 3 If Bond A has a higher coupon rate than Bond B, but the yield to maturity is the same, which of the following
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If Bond A has a higher coupon rate than Bond B, but the yield to maturity is the same, which of the following would be true? a. Duration would be longer for Bond A than Bond B b. Duration would be shorter for Bond A than Bond B c. The duration of the two bonds would be the same, since the yield to maturity is the same. d. The coupon rates are irrelevant to determining duration on bonds. If an put option is out of the money and there are two weeks until expiration: a. Intrinsic value will be positive b. Intrinsic value will be zero c. Intrinsic value will be negative d. The time premium will be zero
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