Question
Which of the following will likely have a higher level of price sensitivity to changes in interest rates: A. 20 year 6% coupon Tesla bond
Which of the following will likely have ahigher levelof price sensitivity to changes in interest rates:
A. 20 year 6% coupon Tesla bond
B. 10 year 8% coupon U.S. Treasury bond
C. 1-year commercial paper issue by Tesla with an effective yield to maturity of 3%
D. Interest Rate Risk Premium is the same for all bonds.
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Introduces Quantitative Finance
Authors: Paul Wilmott
2nd edition
470319585, 470319581, 978-0470319581
