Question: Which statement is correct? A . Z - spread ( zero - volatility spread ) of Bond A is 1 . 0 5 % and
Which statement is correct?
A Zspread zerovolatility spread of Bond A is and the Zspread of Bond B is All else equal, Bond B is risker and will sell at a lower price than Bond A
B If two bonds have the same coupon rate, the longerterm bond has a smaller percentage price change than the shorterterm bond when the market discount rate decreases
C A lowercoupon bond has a greater percentage price change than a highercoupon bond when the market discount rate increases
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