For two bonds with the same maturity and with the same required yield, the lower the coupon rate, the greater the price responsiveness for a given change in the required yield. This is an example of ________ affecting a bond's price sensitivity.

Question

Quizplus · Accepted Answer

The statement is describing the relationship between the coupon rate and price sensitivity of a bond, indicating that the lower the coupon rate, the more sensitive the bond's price will be to changes in the required yield. This demonstrates the impact of a bond's coupon rate on its price sensitivity.

For Two Bonds with the Same Maturity and with the Same