Given the two bonds listed below, which bond would you want to add to your...
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Given the two bonds listed below, which bond would you want to add to your portfolio if you wanted to increase your portfolio's interest rate sensitivity (risk)?
Sample Test Question: Given the two bonds listed below, which bond would you want to add to your portfolio if you wanted to increase your portfolio's interest rate sensitivity (risk)? A) Calculate YTM B) Calculate Duration C) Calculate Convexity D) Calculate the percent return for each bond given a range of rates from-2.25% to +2.25% Bond A Price Coupon Maturity: YTM Bond B Price Coupon Maturity: YTM 72.50 0.00% 90.25 6.50% 5 Years 12 Years
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