## [answered] A zero coupon bond with 2.5 years to maturity has a yield t

A zero coupon bond with 2.5 years to maturity has a yield to maturity of 25% per annum.? A 3-year maturity annual-pay coupon bond has a face value of \$1000 and a 25% coupon rate.? The coupon bond also has a yield to maturity of 25%.? Does the longer maturity bond have a larger interest rate sensitivity?? Why or why not?? Calculate for each bond the percentage price chance associated with a change of yield to maturity from 25% to 26%.

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This question was answered on: Sep 18, 2020

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