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OlKu OlKu
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A year ago
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?


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



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



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



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

Textbook 
Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
Authors:
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CrazyW27CrazyW27
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A year ago
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OlKu Author
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A year ago
this is exactly what I needed
jcarter
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Yesterday
Thanks
rudy.zondo
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2 hours ago
Brilliant ツ
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