Question
1. Higher coupon bonds generally have __________ durations. (longer or shorter) 2. You own two corporate bonds from ABC Corp and XYZ, Inc. with identical
1. Higher coupon bonds generally have __________ durations. (longer or shorter)
2. You own two corporate bonds from ABC Corp and XYZ, Inc. with identical in maturity dates and coupons. What bond "feature" (if embedded in ABC's bond) could make its market yield greater than XYZ's bond? (List 1 potential change)
3. You own two corporate bonds from Rush, Inc. and Triumph Co. with identical in maturity dates and coupons. What two factors distingusing the companies and/or bonds (not bond features) could make the market yield on Rush's bond greater than Triumph's bond? (List 2 potential factors)
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