Question: In the previous question, for a 1 2 - year, 5 % annual coupon bond ( let ' s call it Bond A ) has
In the previous question, for a year, annual coupon bond lets call it Bond A has a face value of $ we calculated change in the price of this bond if the market yield rises to from the current yield of
If we are looking at another bond lets call it Bond B with year time to maturity with the same annual coupon rate and par value, will the change in price higher or lower than the previous year bond, if yield increases from to
Enter your answer either or
change in price for Bond B will be higher than Bond A
change in price for Bond B will be lower than Bond A
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