A 1% Decline in Yield Will Have the Least Effect

question 87

Multiple Choice

A 1% decline in yield will have the least effect on the price of a bond with a ________.

• A) 10-year maturity, selling at 80
• B) 10-year maturity, selling at 100
• C) 20-year maturity, selling at 80
• D) 20-year maturity, selling at 100

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