Question
An investor purchased the 4 bonds listed below. Each of them had a 10 percent yield to maturity at the time of purchase. Which one
An investor purchased the 4 bonds listed below. Each of them had a 10 percent yield to maturity at the time of purchase. Which one would experience the greatest percentage price change if the YTM on each bond fell to 9 percent?
| a. | 5-year, zero-coupon bond | |
| b. | 10-year, zero-coupon bond | |
| c. | 30-year, zero-coupon bond | |
| d. | 10-year, 10% annual coupon bond |
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Private Equity Mathematics
Authors: Oliver Gottschalg
1st Edition
1908783508, 9781908783509
