Question
17. For two bonds identical in every respect except the coupon rate, the price of the higher-coupon bond is less sensitive to the changes in
17.
"For two bonds identical in every respect except the coupon rate, the price of the higher-coupon bond is less sensitive to the changes in interest rates than that of the lower-coupon bond; that is, the lower-coupon bond has a higher interest rate risk." True or false?
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Auditing a business risk appraoch
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
6th Edition
9780324645095, 324645090, 978-0324375589
