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Which of the following statements is CORRECT? If their maturities and other characteristics were the same, a 5 % coupon bond would have more interest
Which of the following statements is CORRECT?
If their maturities and other characteristics were the same, a coupon bond would have more interest rate price risk than a coupon bond.
If their maturities and other characteristics were the same, a coupon bond would have less interest rate price risk than a coupon bond.
A year coupon bond would have more reinvestment rate risk than a year coupon bond, but all year coupon bonds have the same amount of reinvestment rate risk.
A year coupon bond would have more interest rate price risk than a year coupon bond, but all year coupon bonds have the same amount of interest rate price risk.
A zero coupon bond of any maturity will have more interest rate price risk than any coupon bond, even a perpetuity
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