You have two bonds - bond x and bond y both have initial, Ask an Expert

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You have two bonds - Bond X and Bond Y. Both have initial YTM of 10% and both have time to maturity of 25 years. Bond X has a 6% coupon while Bond Y has a 3% coupon.

Let's assume that the market interest rates rise by 2%. Which bond would you have expect to have a more pronounced movement in its value and why?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92870366

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