Use the Following Information to Answer the Question(s)below

question 100

Multiple Choice

Use the following information to answer the question(s) below.Consider the following four corporate bonds that have semiannual compounding:
-If the YTM of these bonds increased to 9%,which bond's price would be most sensitive to this change in YTM?

• A)#1
• B)#2
• C)#3
• D)#4

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Definitions:

Null Hypothesis

A default hypothesis that there is no significant difference or effect, used as a starting point for statistical testing.

Level Of Significance

The probability of rejecting the null hypothesis in a statistical test when it is actually true; a threshold for determining the statistical significance.

Rejection Region

The range of values for which we reject the null hypothesis in hypothesis testing.

Level Of Significance

A threshold used in hypothesis testing, below which the null hypothesis is rejected.