Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Compute for the following given statement and justify your answer.
Consider two bonds. Bond X has a face value of ₱100,000 and five years remaining to maturity. Bond
Y has a face value of ₱100,000 and ten years remaining to maturity. Both bonds have the same stated
rate of 12%. Which bond has the greatest interest rate risk?
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