Question: Question 8 You observe two U . S . Government bonds with the same coupon rates and coupon payment dates. Bond A has a 1
Question
You observe two US Government bonds with the same coupon rates and coupon payment dates. Bond A has a year maturity. and Bond B has a year maturity. Suppose YTMs for both bonds decrease by percent. Bond B has a than bondA.
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larger relative price decrease
b larger relative price increase
c smaller relative price decrease
d smaller relative price increase
e shorter maturity
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