How is a bond’s duration impacted by varying the coupon rate? How is a bond’s duration impacted by varying the time to maturity? What implications would these impacts have for a bond investor if interest rates change?
How is a bond’s duration impacted by varying the coupon rate? How is a bond’s duration impacted by varying the time to maturity? What implications would these impacts have for a bond investor if interest rates change?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 12MC
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- How is a bond’s duration impacted by varying the coupon rate?
- How is a bond’s duration impacted by varying the time to maturity?
- What implications would these impacts have for a bond investor if interest rates change?
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