Question 3 (2 points) You have the following bonds to choose from i. 2% coupon, 20 year maturity ii. 2% coupon, 10 year
Posted: Tue Jan 18, 2022 1:01 pm
Question 3 (2 points) You have the following bonds to choose from i. 2% coupon, 20 year maturity ii. 2% coupon, 10 year maturity iii. Zero coupon, 20 year maturity iv. 1% coupon, 20 year maturity Assume that your primary goal is to maximize price sensitivity. Which of the following bond rankings best meets this goal (i.e. order the bonds from most price sensitive to the least price sensitive)? a) ii), i), iv), ii) b) iii), i), iv), ii) c) ii), iii), iv), i) d) iii), iv), i), ii)