You Own Two Bonds, Each of Which Currently Pays Semiannual

question 27

Multiple Choice

You own two bonds, each of which currently pays semiannual interest, has a coupon rate of 6 percent, a $1,000 face value, and 6 percent yields to maturity.Bond A has 12 years to maturity and Bond B has 4 years to maturity.If the market rate of interest rises unexpectedly to 7 percent, Bond _____ will be the most volatile with a price decrease of _____ percent.

• A)A; 5.73
• B)A; 3.44
• C)A; 8.03
• D)B; 7.97
• E)B; 4.51

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Definitions:

Caller Information

Details or data about a person making a telephone call, often displayed or available to the receiver, including the caller's phone number and sometimes the name.

Caller Threats

Hostile or intimidating communications received via telephone, often involving demands or attempts to illicit fear.

Document Information

Details and data contained within a document that provide understanding or context about its purpose or content.

Caller Information

Details provided by or about the individual making a telephone call, often used in customer service and emergency response systems to identify and assist the caller.