Question: This question has TWO parts. Please be sure to scroll down and make sure you answer both parts. Which of the following bonds will be
This question has TWO parts. Please be sure to scroll down and make sure you answer both parts. Which of the following bonds will be most sensitive to a change in interest rates if all bonds have the same initial yield to maturity? A. a 10 - year bond with a $1,000 face value whose coupon rate is 7.2% APR paid semiannually B. a 20 - year bond with a $1,000 face value whose coupon rate is 7.2% APR paid semiannually C. a 20 - year bond with a $1,000 face value whose coupor rate is 4.5% APR paid semiannually D. a 10 - year bond with a $1,000 face value whose coupon rate is 4.5% APR paid semiannually A measurement of the sensitivity of a bond's price to changes in interest rates is known as: (choose the most appropriate answer below) A. Duration B. Repayment Risk C. Credit Risk D. Yield to Maturity (YTM) This question has TWO parts. Please be sure to scroll down and make sure you answer both parts. Which of the following bonds will be most sensitive to a change in interest rates if all bonds have the same initial yield to maturity? A. a 10 - year bond with a $1,000 face value whose coupon rate is 7.2% APR paid semiannually B. a 20 - year bond with a $1,000 face value whose coupon rate is 7.2% APR paid semiannually C. a 20 - year bond with a $1,000 face value whose coupor rate is 4.5% APR paid semiannually D. a 10 - year bond with a $1,000 face value whose coupon rate is 4.5% APR paid semiannually A measurement of the sensitivity of a bond's price to changes in interest rates is known as: (choose the most appropriate answer below) A. Duration B. Repayment Risk C. Credit Risk D. Yield to Maturity (YTM)
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