Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. question 5 you have two bond coupon with the same

Question 5 You have two bond coupon with the same maturity, one has a 9%...

80.2K

Verified Solution

Question

Finance

image
Question 5 You have two bond coupon with the same maturity, one has a 9% coupon paid semiannually and the other a 8% coupon paid semiannually. Which one has a higher duration and why? a) The 9% coupon bond because a greater portion of the total cashflow will be paid quickly b) The 8% coupon bond because a greater portion of the total cashflow will be paid quickly c) The 9% coupon bond because a smaller portion of the total cashflow will be paid quickly d) The 8% coupon bond because a smaller portion of the total cashflow will be paid quickly

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students