Question: calculation and how to do it pls What is true about long term fixed rate bonds a. Compared to short term bonds, long term bonds

What is true about long term fixed rate bonds a. Compared to short term bonds, long term bonds are more volatile, seeing wider swings with bigger lnterest rate charges b. Compared to short term bonds, long term bonds are more volatile, seeting wider wings with hilger interest rate thunges c. Because of the fixed rate, the bond price will be stable d. They are all discount bonds I bought a 30 year, 5% semiannual annual pay coupon $1,000 par bond for $1,200. What is the YTM closet to this number a. 1.9% b. 2.9% c. 3.9% d. 4.9%
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
