On May 1, 2007, Joe Hill is considering one of the following newly-issued 10 year AAA corporate bonds.
-If the volatility of interest rates is expected to increase,the Joe Hill should __.

Question

On May 1, 2007, Joe Hill is considering one of the following newly-issued 10 year AAA corporate bonds. 
-If the volatility of interest rates is expected to increase,the Joe Hill should __.

Quizplus · Accepted Answer

If the volatility of interest rates is expected to increase, the Asbury bond should be preferred to the Wildwood bond because the Asbury bond has a shorter maturity and is therefore less sensitive to changes in interest rates.

On May 1, 2007, Joe Hill Is Considering One of the Following