Question: Q1 (4 points) Interest rate risks You predict that interest rates are about to raise. Which bond of the followings expect to respond the most
Q1 (4 points) Interest rate risks You predict that interest rates are about to raise. Which bond of the followings expect to respond the most to the interest rate change? Elaborate your answers in no more than 30 words. (i) (ii) (iii) (IV) (V) 5% coupon bond with 5 years to maturity 10% coupon bond with 5 years to maturity. 10% coupon bond with 30 years to maturity Zero coupon bond with 5 years to maturity. Zero coupon bond with 30 years to maturity
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