33. The yield curve is flat and all Treasury securities have a yield to maturity of 7%. What of the following bonds will see the highest percentage rise in price if the yield to maturity for all Treasuries fell to 6%? a. 15-year no-interest loan Bonds issued by the Treasury Department. b. A Treasury bond with a 12-year maturity and a ten percent nominal coupon. c. A Treasury bond with a 15-year maturity and a 12-percent annual coupon. d. A two-year zero-coupon period Bonds issued by the Treasury Department. e. A 15 percent nominal coupon 2-year Treasury bond
33. The yield curve is flat and all Treasury securities have a yield to maturity of 7%. What of the following bonds will see the highest percentage rise in price if the yield to maturity for all Treasuries fell to 6%? a. 15-year no-interest loan Bonds issued by the Treasury Department. b. A Treasury bond with a 12-year maturity and a ten percent nominal coupon. c. A Treasury bond with a 15-year maturity and a 12-percent annual coupon. d. A two-year zero-coupon period Bonds issued by the Treasury Department. e. A 15 percent nominal coupon 2-year Treasury bond
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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33. The yield curve is flat and all Treasury securities have a yield to maturity of 7%. What of the following bonds will see the highest percentage rise in price if the yield to maturity for all Treasuries fell to 6%?
a. 15-year no-interest loan Bonds issued by the Treasury Department.
b. A Treasury bond with a 12-year maturity and a ten percent nominal coupon.
c. A Treasury bond with a 15-year maturity and a 12-percent annual coupon.
d. A two-year zero-coupon period Bonds issued by the Treasury Department.
e. A 15 percent nominal coupon 2-year Treasury bond
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