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Which bond has a higher price risk, bond W or bond X? Why? Which bond has a higher price risk, bond Y or bond Z? Why? Which bond has a higher price risk, bond W or bond Y? Why? Which bond has a higher price risk, bond X or bond Z? Why ? Bond       Coupon Rate        Maturity      YTM=6%      YTM=7%     %Change     YTM=5%      %Change W                   4%                     10            852.79          789.29           -7.45           922.78              16.91 X                    8%                     10            1147.20         1070.24        -6.71            1231.65            15.08 Y                    4%                     30            724.70           627.75          -13.38          846.27               34.85 Z                    8%                     30            1275.29         1124.09         -11.86          1461.17            29.99

Which bond has a higher price risk, bond W or bond X? Why? Which bond has a higher price risk, bond Y or bond Z? Why? Which bond has a higher price risk, bond W or bond Y? Why? Which bond has a higher price risk, bond X or bond Z? Why ? Bond       Coupon Rate        Maturity      YTM=6%      YTM=7%     %Change     YTM=5%      %Change W                   4%                     10            852.79          789.29           -7.45           922.78              16.91 X                    8%                     10            1147.20         1070.24        -6.71            1231.65            15.08 Y                    4%                     30            724.70           627.75          -13.38          846.27               34.85 Z                    8%                     30            1275.29         1124.09         -11.86          1461.17            29.99

Essentials Of Investments
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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Which bond has a higher price risk, bond W or bond X? Why?
Which bond has a higher price risk, bond Y or bond Z? Why?
Which bond has a higher price risk, bond W or bond Y? Why?
Which bond has a higher price risk, bond X or bond Z? Why ?

Bond       Coupon Rate        Maturity      YTM=6%      YTM=7%     %Change     YTM=5%      %Change
W                   4%                     10            852.79          789.29           -7.45           922.78              16.91
X                    8%                     10            1147.20         1070.24        -6.71            1231.65            15.08
Y                    4%                     30            724.70           627.75          -13.38          846.27               34.85
Z                    8%                     30            1275.29         1124.09         -11.86          1461.17            29.99

 

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