The price of which of the following securities is likely to be less sensitive to a 1% increase in market yield? A A 10-year zero coupon bond B A 10-year 10% coupon bond C A Disney unsecured bond D A long maturity treasury bill
The price of which of the following securities is likely to be less sensitive to a 1% increase in market yield? A A 10-year zero coupon bond B A 10-year 10% coupon bond C A Disney unsecured bond D A long maturity treasury bill
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 20P
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The price of which of the following securities is likely to be less sensitive to a 1% increase in market yield?
- A
A 10-year zero coupon bond
- B
A 10-year 10% coupon bond
-
CA Disney unsecured bondDA long maturity treasury bill
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