Which of the following bonds will be most sensitive to a change in interest rates? Group of answer choices a 30-year bond with a $1,000 face value whose yield to maturity is 5.5% and coupon rate is 6.4% paid annually a 15-year bond with a $5,000 face value whose yield to maturity is 7.4% and coupon rate is 6.2% paid annually a 20-year bond with a $3,000 face value whose yield to maturity is 6.0% and coupon rate is 5.4% paid semi-annually a ten-year bond with a $2,000 face value whose yield to maturity is 5.8% and coupon rate is 5.8% paid semi-annually

Which of the following bonds will be most sensitive to a change in interest rates? Group of answer choices a 30-year bond with a $1,000 face value whose yield to maturity is 5.5% and coupon rate is 6.4% paid annually a 15-year bond with a $5,000 face value whose yield to maturity is 7.4% and coupon rate is 6.2% paid annually a 20-year bond with a $3,000 face value whose yield to maturity is 6.0% and coupon rate is 5.4% paid semi-annually a ten-year bond with a $2,000 face value whose yield to maturity is 5.8% and coupon rate is 5.8% paid semi-annually

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 6FPE

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Question

Which of the following bonds will be most sensitive to a change in interest rates?

Group of answer choices

a 30-year bond with a $1,000 face value whose yield to maturity is 5.5% and coupon rate is 6.4% paid annually

a 15-year bond with a $5,000 face value whose yield to maturity is 7.4% and coupon rate is 6.2% paid annually

a 20-year bond with a $3,000 face value whose yield to maturity is 6.0% and coupon rate is 5.4% paid semi-annually

a ten-year bond with a $2,000 face value whose yield to maturity is 5.8% and coupon rate is 5.8% paid semi-annually

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