For a given change in interest rates, the longer the bond's maturity, the ________ the price change.
A) greater
B) same
C) smaller
D) Greater for a premium bond, smaller for a discount bond.
E) None of the above.
Correct Answer:
Verified
Q52: For a premium bond, the
A) Current yield
Q53: For an absolute change in interest rates,
Q54: Modified duration is calculated as:
A) Macaulay
Q55: You had created a bond portfolio last
Q56: To immunize your portfolio, you should
A) Avoid
Q58: All else the same, for a callable
Q59: For a given change in interest rates,
Q60: You are buying a $1,000 face value
Q61: In general, the duration of a coupon
Q62: For a bond selling at a discount,
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