Question
Let's say you have 2 bonds with the same coupon rate, and the same yield to maturity at the moment. Both bonds have the same
Let's say you have 2 bonds with the same coupon rate, and the same yield to maturity at the moment. Both bonds have the same risk profile. One bond has a remaining tenor of 2 years. The other bond has remaining tenor of 4 years. Let's assume that you are a risk averse investor. Which bond would you invest in? Why?
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As a riskaverse investor you would generally prefer investments that offer lower levels of risk or u...
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Fundamentals of Corporate Finance
Authors: Stephen M. Ross, Randolph W Westerfield, Robert R. Dockson, Bradford D Jordan
12th edition
007353062X, 73530628, 1260153592, 1260153590, 978-1260153590
