D matures in 4 years, while Bond E matures in 7 years. If the required return changes by 15 percent
A. Bond D will have a greater change in price.
B. Bond E will have a greater change in price.
C. the price of the bonds will be constant.
D. the price change for the bonds will be equal.
Answer:B
D matures in 4 years, while Bond E matures in 7 years. If the required return changes by 15 percent
A. Bond D will have a greater change in price. B. Bond E will have a greater change in price. C. the price of the bonds will be constant. D. the price change for the bonds will be equal.