Its Yield to Maturity Declined by 1%, Which of the Following

question 19

Multiple Choice

its yield to maturity declined by 1%, which of the following bonds would have the largest percentage increase in value?

• A)A 1-year zero coupon bond.
• B)A 1-year bond with an 8% coupon.
• C)A 10-year bond with an 8% coupon.
• D)A 10-year bond with a 12% coupon.
• E)A 10-year zero coupon bond.

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Definitions:

Two-way Factor ANOVA

A statistical test used to determine the effect of two nominative variables on a continuous outcome.

Total Sum of Squares

A statistical measure that quantifies the total variance in the observed data points from the mean of the data.

Variation

The extent to which data points in a statistical distribution or dataset diverge from the average or mean.

Degrees of Freedom

The number of independent values or quantities that can freely vary in an analysis without violating any given constraints.