Answered: Which of the following conditions will…

Which of the following conditions will increase the interest rate risk on a bond? shorter time to maturity longer time to maturity lower coupon rate higher coupon rate

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 3Q: The rate of return on a bond held to its maturity date is called the bonds yield to maturity. If...

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Which of the following conditions will increase the interest rate risk on a bond?

shorter time to maturity
longer time to maturity
lower coupon rate
higher coupon rate

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