[求助]请教一道一级练习题 points, 练习题, following

spielberg

Which of the following bonds would be the best one to own if the yield curve shifts down by 50 basis points at all maturities?

 

A. 4-year 8%, 8% YTM

B. 5-year 8%, 7.5% YTM

C. 5-year 8.5%, 8% YTM

 

请问这个该怎么选呢?

jackchou

the bond withe the biggest duration will benefit the holeder the most from the decreasing of yield curve. so we should choose B.