The Sensitivity of Coupon Price to Change in Its Yield

question 254

Multiple Choice

The sensitivity of coupon price to change in its yield:

• A) Is directly related to the bond's yield
• B) Is inversely related to the bond's yield to maturity
• C) Is greater for increases in yield to maturity than it is for decreases in yield to maturity
• D) Is constant regardless of whether the yield to maturity increases or decreases

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