Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. which of the following statements correctly descri

Which of the following statements correctly describe the relationship between bond price sensitivity to changes...

80.2K

Verified Solution

Question

Accounting

image

Which of the following statements correctly describe the relationship between bond price sensitivity to changes in market yield and different characteristics of the bond? The value of a fixed coupon bond will be unaffected by changes in market yields because the cash flows are fixed. Holding all else equal, the prices of bonds with longer terms to expiry will be less sensitive to a change in market yield than the prices of bonds with shorter terms to expiry. Holding all else equal, the prices of bonds with higher coupon rates will be more sensitive to a change in market yield than the prices of bonds with lower coupon rates. More than one of the other answers is correct None of the other answers is correct

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