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Author Question: A 12-year Treasury bond has a 9% coupon, and a 9-year Treasury bond has a 12% coupon. Both bonds ... (Read 187 times)

vowens

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on: Aug 7, 2023
A 12-year Treasury bond has a 9% coupon, and a 9-year Treasury bond has a 12% coupon. Both bonds have the same yield to maturity. If the yield to maturity of both bonds decreases by the same amount, which of the following statements would be correct?

◦

The prices of both bonds would increase by the same amount.


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The prices of both bonds would decrease by the same amount. 


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Both bonds would increase in price, but the 12-year bond would have the greater percentage increase in price.


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One bond’s price would decrease, while the other bond’s price would increase.

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Marked as best answer by vowens on Aug 7, 2023

avelasquez

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Reply #1 on: Aug 7, 2023
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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vowens

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

kishoreddi

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Reply 3 on: Yesterday
Excellent

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