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Use the table for the question(s) below.
Consider the following four bonds that pay annual coupons:
-Which of the four bonds is the most sensitive to a one percent increase in the YTM?
Unit Of Labor
A measure of labor input, often referred to as one hour of work by an employee or worker.
Law Of Diminishing Returns
An economic principle stating that if one factor of production is increased while others remain constant, the overall marginal returns will eventually decrease.
Average Output
The total output produced divided by the number of units of input, measuring the efficiency or productivity of production.
Diminishing Marginal Returns
The principle that as an additional unit of a factor of production is added to a fixed amount of other factors, the increase in output will eventually decrease.
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