Which of the Following Two Bonds Is More Price Sensitive

question 2

Multiple Choice

Which of the following two bonds is more price sensitive to changes in interest rates?
1) A par value bond,X,with a 5-year-to-maturity and a 10% coupon rate.
2) A zero-coupon bond,Y,with a 5-year-to-maturity and a 10% yield-to-maturity.

• A)Bond X because of the higher yield to maturity.
• B)Bond X because of the longer time to maturity.
• C)Bond Y because of the longer duration.
• D)Both have the same sensitivity because both have the same yield to maturity.
• E)None of the above

Differentiate between various theories and historical perspectives on evolution, including Darwin's contributions and Mendel's laws of heredity.

Recognize the significance of DNA, genes, and chromosomes in genetics and heredity.

Relate the process of protein synthesis and the function of enzymes in living organisms.

Describe the mechanisms of cell division, including mitosis and meiosis, and their importance in reproduction and genetic variation.

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Definitions:

Estimated

An approximate calculation or judgment regarding a number, value, or size based on available data, often used in planning and forecasting.

Liabilities

Economic responsibilities or liabilities that a business must pay back to others, requiring the disbursement of economic resources over a period.

Sales Taxes Payable

A liability account that represents the amount of sales tax collected from customers by a business, which is owed to the government.

Current Liability

Financial obligations that a company is required to pay within one year.