Which of the Following Increase the Price Sensitivity of a Bond

question 40

Multiple Choice

Which of the following increase the price sensitivity of a bond to changes in interest rates?
I.increase in time to maturity
II.decrease in time to maturity
III.increase in coupon rate
IV.decrease in coupon rate

• A)II only
• B)I and III only
• C)I and IV only
• D)II and III only
• E)II and IV only

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