The prices of ____-coupon and ____ maturities are most sensitive to changes in the required rate of return.

Name: The prices of ____-coupon and ____ maturities are most sensitive to changes in the required rate of return.
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Question

Quizplus · Accepted Answer

Low-coupon bonds and long maturities are most sensitive to changes in the required rate of return because they have longer durations, meaning their cash flows are spread out over a longer period, making them more affected by interest rate changes.

The Prices of ____-Coupon and ____ Maturities Are Most Sensitive

The Prices of -Coupon and Maturities Are Most Sensitive