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Author Question: An investor has two bonds in their investment portfolio. Bond A matures in 8 years and Bond B ... (Read 203 times)

903f23fj0

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Question 1

An 18-year corporate bond was issued 11 years ago. What is it today?

a medium-term bond with 7 years to maturity


a medium-term bond with 18 years to maturity


a long-term bond with 7 years to maturity


a long-term bond with 18 years to maturity



Question 2

An investor has two bonds in their investment portfolio. Bond A matures in 8 years and Bond B matures in 20 years. All else equal, which bond would have a greater price sensitivity to a given change in interest rates?

Bond A would have a greater sensitivity to a given change in interest rates due to its relative shorter term to maturity.


Bond A and Bond B would have the same price sensitivity since term to maturity would not affect bond price.


Bond B would have a greater sensitivity to a given change in interest rates as it has a longer term to maturity.


Bond A and Bond B would have no price sensitivity since a given change in interest rates would not affect bond price.



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Marked as best answer by 903f23fj0 on Aug 7, 2023

Mynameisrandom

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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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903f23fj0

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Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it


olderstudent

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Reply 3 on: Yesterday
Wow, this really help

 

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