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:

Greek Philosophers

Thinkers from ancient Greece who are known for their foundational contributions to philosophy, including ethics, metaphysics, and logic.

Concept

An abstract idea or a general notion that represents understanding, thought, or a complex element of something.

Inequality

The unequal distribution of resources, rights, and opportunities among individuals or groups in society.

Benefit

An advantage or profit gained from something.