Question
Use the following information to answer the question(s) below. Consider the following four corporate bonds that have semiannual compounding: Bond A B C D Coupon
Use the following information to answer the question(s) below. Consider the following four corporate bonds that have semiannual compounding:
| Bond | A | B | C | D |
| Coupon rate (%) | 8 | 7 | 9 | 7 |
| Years to maturity | 5 | 10 | 20 | 20 |
If the YTM of these bonds increases by 1%, which bond's price would be most sensitive to this change in YTM?
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Fundamentals Of Investments Valuation And Management
Authors: Bradford D Jordan, Thomas W. Miller Jr., Steven D. Dolvin
6th Edition
0073530719, 9780073530710
