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Author Question: Assuming all else is constant, which of the following statements is correct? (Read 41 times)

bubba123

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Assuming all else is constant, which of the following statements is correct?

For a bond of any maturity, a 100basispointincrease in the market interest ratewould causea smaller dollar capital loss than the capital gain stemming from a 100basispointdecrease in the interest rate. 


For any given maturity, a 100basispointincrease in the market interest rate would cause a larger dollar capital loss than the capital gain stemming from a 100basispointdecrease in the interest rate.


Price sensitivity as measured by the percentage change in price due to a given change in the required rate of return increases as a bond’s maturitydecreases.


A 20-year zero coupon bond has less interest rate risk than a 20-year coupon bond.



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Marked as best answer by bubba123 on Aug 7, 2023

fowlerhop@rocketmail.com

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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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bubba123

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


peter

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Reply 3 on: Yesterday
Excellent

 

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