Examlex

Solved

Which of the Following Two Bonds Is More Price Sensitive

question 74

Multiple Choice

Which of the following two bonds is more price sensitive to changes in interest rates? 1) A par-value bond, D, with a 2 year to maturity and an 8% coupon rate.
2) A zero-coupon bond, E, with a 2 year to maturity and an 8% yield to maturity.


Definitions:

Teenagers

Individuals who are in the phase of life that transitions them from childhood to adulthood, typically aged between 13 and 19 years.

Ingest Hormones

The act of consuming hormones orally through medication or supplements for various health and medical reasons.

Menopausal Woman

A woman undergoing menopause, a natural biological process marking the end of her reproductive years.

Strategy

A plan of action or policy designed to achieve a major or overall aim.

Related Questions