Question

请教几道金融学方面的题目（英），谢谢

1.consider three bonds with 8 coupon rates all selling at face value, the shot-term bonds has a maturity of 4 years, the intermediate-term bonds have maturity 8 years, and the long-term bonds have maturity 30 years,
(1)what will happen to the price of each bond if their yields increase to 9%?
(2)what do you conclude about the relationship between time to maturity and the sensitivity of bond prices to interest rates?

Answer 1

1. their prices will all decrease as yields increased to 9%. 随着折现率上升 债券价格下降

2. the longer the time to maturity, the more sensitive the bond price respect to interest rate. TTM越长 债券价格对折现率变动的敏感度越高