codycollier

10.12.2021 • 

Business

Consider two bonds, a 3-year bond paying an annual coupon of 5%, and a 20-year bond, also with an annual coupon of 5% Both bonds currently sell at par value. Now suppose that interest rates rise and the yield to maturity of the two bonds increases to 8% a. What is the new price of the 3-year bond? (Round your answer to 2 decimal places.)
Price of the 3-year bond
b. What is the new price of the 20-year bond? (Round your answer to 2 decimal places.)
Price of the 20-year bond
c. Do longer or shorter maturity bonds appear to be more sensitive to changes in interest rates?
Longer
Shorter

Ответ:

loravillanueva87

16.10.2022

Business

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