In: Finance
Consider the following bonds
Bond |
Coupon Rate (Annual Payments) | Maturity(Years) |
A | 3% |
8 |
B | 5% | 8 |
C | 3% | 4 |
D | 5% | 4 |
Which of the bonds (A – D) is most sensitive to a 1% increase in interest rates. Which is least sensitive?