A 1% Decline in the Yield to Maturity Will Have

question 16

Multiple Choice

A 1% decline in the yield to maturity will have the greatest effect on the price of the bond with a

• A) 15-year maturity, selling at $900
• B) 15-year maturity, selling at $1,000
• C) 20-year maturity, selling at $900
• D) 20-year maturity, selling at $1,000

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