Compare the four bonds of equal maturities the par, Ask an Expert

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Compare the four bonds of equal maturities ( the par, discount, premium, and zero coupon ); assuming that the yields on the bonds are perfectly correlated ( the yields move up and down together), which is more sensitive to a change in interest rates and why?

A. Zero and discount; no coupon and lowest coupon

B. Discount and premium; different from market interest

C. Par and discount; lowest coupons

D. Par and premium; highest coupons

E. Zero and premium; no coupon and highest coupon

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92257714

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