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You currently have two different bonds in your portfolio: Bond A has 9 years left till maturity, and it pays an 8 % annual coupon.

You currently have two different bonds in your portfolio: Bond A has $9$ years left till maturity, and it pays an $8 %$ annual coupon. Bond B has $4$ years left and is paying a $10 %$ coupon. If market interest rates increase by $3 %,$ which bond's price will be more greatly impacted by this?

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Question

You currently have two different bonds in your portfolio: Bond A has 9 years left till maturity, and it pays an 8 % annual coupon.

You currently have two different bonds in your portfolio: Bond A has 9 years left till maturity, and it pays an 8% annual coupon. Bond B has 4 years left and is paying a 10% coupon. If market interest rates increase by 3%, which bond's price will be more greatly impacted by this?

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Recommended Textbook for

Advances In Financial Machine Learning

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You currently have two different bonds in your portfolio: Bond A has $9$ years left till maturity, and it pays an $8 %$ annual coupon. Bond B has $4$ years left and is paying a $10 %$ coupon. If market interest rates increase by $3 %,$ which bond's price will be more greatly impacted by this?