Question
Which bond has higher interest rate risk (i.e., which one is more sensitive to interest rate change)? Question: consider two bonds: Bond A. 8% coupon
Which bond has higher interest rate risk (i.e., which one is more sensitive to interest rate change)?
Question: consider two bonds:
Bond A. 8% coupon rate, 10 years to maturity
Bond B. 10% coupon rate, 13 years to maturity
Everything else is the same (YTM = 10%, Par = 1000).
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Personal Finance
Authors: Jane King, Mary Carey
2nd Edition
0198748779, 9780198748779
