Question
1. Consider 2 bonds that have the same coupon rate and YTM. Bond A has a maturity of 4 years, and Bond B has a
1. Consider 2 bonds that have the same coupon rate and YTM. Bond A has a maturity of 4 years, and Bond B has a maturity of 12 years. If the YTM for the bonds increases by the same amount, which bond will have a greater percentage change in price? Just list Bond A or B.
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Corporate Finance With Connect Access Card
Authors: Stephen Ross ,Randolph Westerfield ,Jeffrey Jaffe
10th Edition
1259672484, 978-1259672484
