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Which of the following bonds will have higher price sensitivity to interest rate (i.e. higher interest rate risk)? 5 years to maturity, 10% coupon bonds
Which of the following bonds will have higher price sensitivity to interest rate (i.e. higher interest rate risk)?
5 years to maturity, 10% coupon bonds | |
30 years to maturity, 10% coupon bonds | |
30 years to maturity, 3% coupon bonds | |
5 years to maturity, 3% coupon bonds |
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