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erant Web Acce Question 17 5 pts Which of the following statements is correct? You own a 10-year zero coupon bond and a 10-year 6%
erant Web Acce Question 17 5 pts Which of the following statements is correct? You own a 10-year zero coupon bond and a 10-year 6% annual coupon bond. Both bonds have a 6% YTM. If market interest rates rise from the current level, the zero coupon bond will experience the larger percentage price decline. The longer the time to maturity, the smaller the change in the value of a bond in response to a given change in interest rates. The shorter the time to maturity, the greater the change in the value of a bond in response to a given change in interest rates. The time to maturity does not affect the change in the value of a bond in response to a given change in interest rates You own a 10-year zero coupon bond and a 10-year 6% annual coupon bond. Both bonds have a 6% YTM. If market interest rates rise from the current level, the zero coupon bond will experience the smaller percentage price decline
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