Which of the following bond prices is most sensitive to market rate changes? The par value is $1,000 for all. Oa. 6 years, 4.5% coupon rate, 3% YTM O b. 10 years, 4.5% coupon rate, 2.99% YTM O c. 6 years, 5.5% coupon rate, 4% YTM O d. 10 years, 5.5% coupon rate, 3% YTM e. 10 years, zero coupon bond, 2.99% YTM

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Which of the following bond prices is most sensitive to market rate changes? The par
value is $1,000 for all.
O a.
6 years, 4.5% coupon rate, 3% YTM
O b. 10 years, 4.5% coupon rate, 2.99% YTM
O c. 6 years, 5.5% coupon rate, 4% YTM
O d. 10 years, 5.5% coupon rate, 3% YTM
е.
10 years, zero coupon bond, 2.99% YTM
Transcribed Image Text:Which of the following bond prices is most sensitive to market rate changes? The par value is $1,000 for all. O a. 6 years, 4.5% coupon rate, 3% YTM O b. 10 years, 4.5% coupon rate, 2.99% YTM O c. 6 years, 5.5% coupon rate, 4% YTM O d. 10 years, 5.5% coupon rate, 3% YTM е. 10 years, zero coupon bond, 2.99% YTM
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