Question
Bond A has coupon rate of 5% and Bond B has coupon rate of 8%. The two bonds are otherwise equivalent and both have a
Bond A has coupon rate of 5% and Bond B has coupon rate of 8%. The two bonds are otherwise equivalent and both have a YTM of 7%. Which of the following statements is correct?
Bond A has more interest rate risk than Bond B.
Bond B has more interest rate risk than Bond A.
Both bonds have the same interest rate risk.
Both bonds are premium bonds.
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Personal Finance
Authors: Jack R Kapoor, Glencoe McGraw Hill, Les R Dlabay, Robert J Hughes
1st Edition
0078698006, 9780078698002
