Quiz Ch 07 – T/F Comparative Price Risk of Bonds with Different Original Maturities
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or false: A bond with an original maturity of 20 years and 1 year remaining has greater price risk compared to a 10-year original maturity bond with 1 year remaining, assuming equal default risk and coupon rates, and no call provisions.