Coupon rate $$ Yield to maturity $$ Current yield

Coupon rate $>$ Current yield $>$ Yield to maturity

uestion $3(0\mathrm{.}357143$ points$)$

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A newly issued bond has a coupon rate of $6\mathrm{.}4$ percent and semiannual interest payments. The bonds are currently priced at par. The yield to maturity earned by these bonds must be:

$3\mathrm{.}2$ percent.

greater than $3\mathrm{.}2$ percent but less than $6\mathrm{.}4$ percent.

$6\mathrm{.}4$ percent.

greater than $6\mathrm{.}4$ percent.

less than $3\mathrm{.}2$ percent.

Question $4(0\mathrm{.}357143$ points$)$

In response to a change in the market rate of interest, the price sensitivity of a bond increases as the: