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You are considering two bonds: Bond A 6% Coupon Rate 20 years to maturity Bond B 8% Coupon Rate 5 years to maturity Holding everything
You are considering two bonds:
Bond A | 6% Coupon Rate | 20 years to maturity |
Bond B | 8% Coupon Rate | 5 years to maturity |
Holding everything else constant, which of the following statements is true?
Group of answer choices
a. Bond A will be more sensitive (volatile) to interest rate changes.
b. Bond B will be more sensitive (volatile) to interest rate changes.
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