Rank the interest sensitivity of the following from most sensitive (to an interest rate change) to the least sensitive I. 8-year bond with 8.9% coupon rate (payable annually) and YTM =3% EAR II. 7-year bond with 8.9% coupon rate (payable semi-annually) and YTM =3% EAR III. 7-year bond with 8.8% coupon rate (payable daily) and YTM =3% EAR A) I. II. III. B) I. III. II. C) II. III. I. D) III. II. I. E) III. I. II.

Rank the interest sensitivity of the following from most sensitive (to an interest rate change) to the least sensitive I. 8-year bond with 8.9% coupon rate (payable annually) and YTM =3% EAR II. 7-year bond with 8.9% coupon rate (payable semi-annually) and YTM =3% EAR III. 7-year bond with 8.8% coupon rate (payable daily) and YTM =3% EAR A) I. II. III. B) I. III. II. C) II. III. I. D) III. II. I. E) III. I. II.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 12P

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