Question
Towne Center Bonds pay 12% coupon and have a maturity of 10 years, while Village Market Bonds pay 6% coupon and have a maturity
Towne Center Bonds pay 12% coupon and have a maturity of 10 years, while Village Market Bonds pay 6% coupon and have a maturity of 20 years. How do coupon and maturity impact the volatility of Towne and Village bonds? This is a concept question and no calculations are required. Use your own words for this answer.
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