The larger an asset's coupon rate, the greater its price sensitivity to a change in the discount rate, other things being constant.

Name: The larger an asset's coupon rate, the greater its price sensitivity to a change in the discount rate, other things being constant.
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Question

Quizplus · Accepted Answer

The larger an asset's coupon rate, the less sensitive its price is to a change in the discount rate, because the investor receives more of the asset's total cash flow earlier in its life.

The Larger an Asset's Coupon Rate, the Greater Its Price