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“A low-coupon security is more price-volatile [in response to a given change in yield that a...

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Finance

  1. “A low-coupon security is more price-volatile [inresponse to a given change in yield that a high-coupon security.”True or false, or what? Explain carefully.

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True a low coupon security is more price volatile than high coupon rate Considering maturity and par value to be same lower coupon rate will fluctuate    See Answer
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“A low-coupon security is more price-volatile [inresponse to a given change in yield that a high-coupon security.”True or false, or what? Explain carefully.

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