Bond b has a time to maturity of 15 years and a duration of


Bond A has a time to maturity of 16 years and a duration of 12.98 years. Bond B has a time to maturity of 15 years and a duration of 13.12 years. Which bond has more interest rate risk and why?

Solution Preview :

Prepared by a verified Expert
Business Economics: Bond b has a time to maturity of 15 years and a duration of
Reference No:- TGS02555652

Now Priced at $10 (50% Discount)

Recommended (90%)

Rated (4.3/5)