Which of the Following Bonds Will Be Most Sensitive to a Change

question 62

Multiple Choice

Which of the following bonds will be most sensitive to a change in interest rates?

• A)a ten-year bond with a $2000 face value whose yield to maturity is 5.8% and coupon rate is 5.8% APR paid semi-annually
• B)a 15-year bond with a $5000 face value whose yield to maturity is 7.4% and coupon rate is 6.2% APR paid annually
• C)a 20-year bond with a $3000 face value whose yield to maturity is 6.0% and coupon rate is 5.4% APR paid semi-annually
• D)a 30-year bond with a $1000 face value whose yield to maturity is 5.5% and coupon rate is 6.4% APR paid annually
• E)a five-year bond with a $10,000 face value whose yield to maturity is 6.4% and coupon rate is 6.8% APR paid annually

Assess the importance of real GDP per person and its growth rate in evaluating a nation’s economic prosperity.

Analyze historical economic growth trends among different nations.

Comprehend the concept of productivity and its determinants.

Identify how differences in productivity and resources contribute to variations in standards of living.

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