Question
An investor purchased the 4 bonds listed below. Each of them had a 9 percent yield to maturity at the time of purchase. Which one
An investor purchased the 4 bonds listed below. Each of them had a 9 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 8 percent?
| a. | 10-year, zero-coupon bond | |
| b. | 5-year, zero-coupon bond | |
| c. | 30-year, zero-coupon bond | |
| d. | 10-year, 10% annual coupon bond |
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Personal Finance
Authors: Jack Kapoor, Les R. Dlabay, Robert J. Hughes
2nd Edition
0256079056, 9780256079050
