Question
i just need this two plss Which of the following bonds will be most sensitive to a change in interest rates? A. A 20-year bond
i just need this two plss
Which of the following bonds will be most sensitive to a change in interest rates?
| A. | A 20-year bond with coupon rate 5.0%. | |
| B. | A 10-year bond with coupon rate 5.0%. | |
| C. | A 5-year bond with coupon rate 5.0%. | |
| D. | A 15-year bond with coupon rate 5.0%. |
Consider the situation in which Jackson wants to earn a return of 3% (YTM), but the bond being considered for purchase offers a coupon rate of 3% with a face value of $5,000. Assume that the bond pays semiannual interest payments and has three years to maturity. What is the price of this bond?
| A. | $1,000 | |
| B. | $3,000 | |
| C. | $7,000 | |
| D. | $5,000 |
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Cases In Financial Management
Authors: I.M. Pandey
3rd Edition
0071333428, 978-0071333429
