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Which of the following bonds will have the smallest percentage decrease in price if all required returns increase by 1%?
A. 1-year 10% coupon bond
B. 20-year zero-coupon bond
C. 20-year 10% coupon bond
Answer: A
Explanation:
A bond's time to maturity is positively related to the elasticity of the bond's price with respect to changes in its required return. A bond's coupon rate is inversely related to the elasticity of the bond's price with respect to changes in its required return.
NEW QUESTION: 2
Blue Berry Corporation, one of the biggest fruit traders in Canada, has the biggest competitor, Red Cherry Corporation. Blue Berry uses a web application that is developed by using java technologies, whereas Red Cherry's web application uses non-Java technologies. Blue Berry plans to share business sensitive, transactional data between the two systems by integrating them in a loosely coupled manner.
Which technology should be used to this?
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D. It is a term used for Refilled Remanufactured and Clone cartridges
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Aalk - 2014-05-05 16:45:18
Plato - 2014-05-05 16:45:51
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Eleanore - 2014-09-28 16:36:48