Question
If you know the bond value for 3 different rates, how can you tell which is more more exposed to interest rate risk vs which
If you know the bond value for 3 different rates, how can you tell which is more more exposed to interest rate risk vs which is more vulnerable to credit (default) risk?
ie: 4% PV = 1271.81
6% PV = 1000
8% PV = 803.09
Which bond has more interest rate risk? Which bond has more default risk?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
13th edition
978-1285027371, 128502737X, 978-1133541141
