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Author Question: Consider two recent bond issues by Microsoft: both have face values of $1,000 and coupon rates of ... (Read 21 times)

jake

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Consider two recent bond issues by Microsoft: both have face values of $1,000 and coupon rates of 10% but one bond (call it the short bond) has five years to maturity and the other, the long bond, has twenty years to maturity. Which bond do you expect to be more sensitive to a change in yields? That is, for a given change in yield which bond (the long or the short) will experience a greater change in price?
◦ The long bond
◦ They are equally sensitive.
◦ The short bond


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Marked as best answer by jake on Apr 25, 2021

miss.ashley

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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jake

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)


kjohnson

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Reply 3 on: Yesterday
:D TYSM

 

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