Question
d) Samantha and Roberta are discussing the riskiness of two treasury bonds A& B with the following features: Bond Price Modified Duration A 90 4
d) Samantha and Roberta are discussing the riskiness of two treasury bonds A& B with the following features:
Bond Price Modified Duration
A 90 4
B 50 6
Samantha claims that Bond B has more price volatility because of its higher modified duration. Roberta disagrees and claims that Bond A has more price volatility despite its lower modified duration. Who is right? (5 points)
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Advanced Finance
Authors: Michael Fardon
1st Edition
1872962319, 1872962173, 978-1872962313, 978-1872962177
