All Else Equal, a Zero-Coupon Bond's Price Is More Sensitive

question 66

True/False

All else equal, a zero-coupon bond's price is more sensitive to changes interest rates than a bond with a 10% annual coupon.

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Definitions:

Inorganic Ions

Ions that are found in inorganic compounds, not containing carbon as a principal element.

Animal Waxes

Waxy substances produced by animals, often used for protection or waterproofing.

Fatty Acid

Long chain hydrocarbons with a terminal carboxyl group, which are components of many types of lipids (fats and oils).