* This question has TWO parts. Please be sure to scroll down and make sure you answer both parts. Which of the following bonds will be least sensitive to a change in interest rates if all bonds have the same initial yield to maturity? OA. a 20-year bond with a $1,000 face value whose coupon rate is 7.5% APR paid semiannually OB. a 20-year bond with a $1,000 face value whose coupon rate is 5.1% APR paid semiannually OC. a 10-year bond with a $1,000 face value whose coupon rate is 7.5% APR paid semiannually OD. a 10-year bond with a $1,000 face value whose coupon rate is 5.1% APR paid semiannually A measurement of the sensitivity of a bond's price to changes in interest rates is known as: (choose the most appropriate answer below) OA. Yield to Maturity (YTM) OB. Credit Risk OC. Repayment Risk OD. Duration и

Suppose that the prices of zero-coupon bonds with various maturities are given in the following table. The face value of each bond is $1,000. Maturity (Years) 1 2 3 4 5 Show Transcribed Text B) How could you construct a 1-year forward loan beginning in year 3? (Face Value) C) How could you construct a 1-year forward loan beginning in year 4? (Face Value) Required A Required B Complete this question by entering your answers in the tabs below. Face value Rate of synthetic loan → Show Transcribed Text Price $ 970.93 898.39 836.92 How could you construct a 1-year forward loan beginning in year 3? Note: Round your Rate of synthetic loan answer to 2 decimal places. Required A 776.20 685.42 Required B Face value Rate of synthetic loan Required C 7.85 % Required C How could you construct a 1-year forward loan beginning in year 4? Note: Round your Rate of synthetic loan answer to 2 decimal places. Ċ 13.29 %

Consider the following bonds: •Bond A: A 2-year zero-coupon bond with a face value of $100 and 6% YTM. •Bond B: A 2-year par-value bond with a face value of $100 and 6% coupon rate. *Bond C: A 2-year par-value bond with a face value of $100 and 7% coupon rate. Suppose the yield curve shifts upwards by one percent. Which bond among bonds A, B, and C will experience the largest percentage price change? Which will have the lowest percentage price change? O a. Bond A; Bond C O b. Bond A; Bond B O c. Bond B; Bond C O d. Bond C; Bond B

This question has TWO parts. Please be sure to scroll down and make sure you answer both parts. Which of the following bonds will be most sensitive to a change in interest rates if all bonds have the same initial yield to maturity? O A. a 10-year bond with a $1,000 face value whose coupon rate is 4.7% APR paid semiannually OB. a 20-year bond with a $1,000 face value whose coupon rate is 8.1% APR paid semiannually OC. a 20-year bond with a $1,000 face value whose coupon rate is 4.7% APR paid semiannually OD. a 10-year bond with a $1,000 face value whose coupon rate is 8.1% APR paid semiannually ... A measurement of the sensitivity of a bond's price to changes in interest rates is known as: (choose the most appropriate answer below) OA. Duration OB. Yield to Maturity (YTM) OC. Repayment Risk OD. Credit Risk