Question
In response to a change in the market rate of interest, the price sensitivity of a bond increases as the: Multiple Choice coupon rate decreases
In response to a change in the market rate of interest, the price sensitivity of a bond increases as the:
Multiple Choice
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coupon rate decreases and the time to maturity increases.
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coupon rate increases.
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coupon rate and time to maturity both increase.
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time to maturity decreases.
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time to maturity and coupon rate both decrease.
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts
11th Edition
1264413041, 9781264413041
