Question
Given the following two bonds, which would exhibit the greatest duration and sensitivity to a change in the overall market interest rate? TELL WHY! a.
Given the following two bonds, which would exhibit the greatest duration and sensitivity to a change in the overall market interest rate? TELL WHY!
a. AAA-Rated, 4.75% coupon, 15 year maturity, priced at par, 100.0
b. BB-Rated, 7.875%, 7 year maturity, priced at 104.0
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Own Your Money
Authors: Michela Allocca
1st Edition
0760381127, 978-0760381120
