1
answer
0
watching
12
views
23 Nov 2019
Which bond has higher interest rate risk (i.e., which one is more sensitive to interest rate change)?
Question: consider two bonds:
Bond A. 8% coupon rate, 10 years to maturity
Bond B. 10% coupon rate, 13 years to maturity
Everything else is the same (YTM = 10%, Par = 1000).
Which bond has higher interest rate risk (i.e., which one is more sensitive to interest rate change)?
Question: consider two bonds:
Bond A. 8% coupon rate, 10 years to maturity
Bond B. 10% coupon rate, 13 years to maturity
Everything else is the same (YTM = 10%, Par = 1000).
23 Aug 2023
Unlock all answers
Get 1 free homework help answer.
Already have an account? Log in