Question
Best Co. has the following bonds outstanding: Bond Price Maturity (yrs) Compounding Frequency Coupon (%) Par YTM (%) A ? 1 Semi-annual 1 1,000 0.75
Best Co. has the following bonds outstanding:
| Bond | Price | Maturity (yrs) | Compounding Frequency | Coupon (%) | Par | YTM (%) |
| A | ? | 1 | Semi-annual | 1 | 1,000 | 0.75 |
| B | 955 | 5 | Semi-annual | 2 | 1,000 | ? |
| C | ? | 10 | Semi-annual | 3 | 1,000 | 5.00 |
| D | 127 | 30 | Semi-annual | 0 | 1,000 | ? |
Which bond is least price sensitive to changes in interest rates? This means its price changes the least for a given change in rates.
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Introduction To Finance Financial Management And Investment Management
Authors: Pamela P. Drake, Frank J. Fabozzi, Francesco A. Fabozzi
1st Edition
9811239657, 978-9811239656
