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What can you conclude about the relative sensitivity of changing bond prices based on a bond's Maturity, Coupon Rate, and Market Rate ? [i] Shorter
What can you conclude about the relative sensitivity of changing bond prices based on a bond's Maturity, Coupon Rate, and Market Rate? | |||||
[i] | Shorter maturity (e.g. 5-yr) | versus longer maturity (e.g. 30-yr) bonds? | |||
[ii] | Lower coupon (e.g. 2%) | versus higher coupon (e.g. 8%) bonds? | |||
[iii] | Lower market rate (e.g. 1.5%) | versus higher market rate (e.g. 7%) bonds? | |||
[iv] | Lower bond Convexity (e.g. 25) | versus higher Convexity (e.g. 250) bonds? |
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