Question
An investor purchased the 4 bonds listed below. Each of them had a 7 percent yield to maturity at the time of purchase. Which one
An investor purchased the 4 bonds listed below. Each of them had a 7 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 6 percent?
| a. 5-year, zero-coupon bond | |
| b. 10-year, 10% annual coupon bond | |
| c. 30-year, zero-coupon bond | |
| d. 10-year, zero-coupon bond |
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
7th Edition
0324171730, 978-0324171730
