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Which of the following bonds is least sensitive to changes in interest rates?
Related Topics
Wize University Introduction to Finance Textbook > Bond Valuation
Interest Rate Risk
3 Activities
Which of the following bonds is least sensitive to changes in interest rates?
A) A 5-year bond with a 3% coupon rate and a yield to maturity of 6%
B) A 30-year bond with a 5% coupon rate and a yield to maturity of 8%
C) A 5-year bond with a 7% coupon rate and a yield to maturity of 8%
D) A 30-year bond with a 3% coupon rate and a yield to maturity of 8%
I don't know
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