Bonds has higher interest rate sensitivity

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Reference no: EM131959894

1. Which of the following bonds has a higher interest rate sensitivity?

A) Bond A is an 8% coupon, 20-year maturity bond selling at par value.

B) Bond B is an 8% coupon, 20-year maturity bond selling below par value.

C) Bond C is an 8% coupon, 10-year maturity bond selling at par value.

2. Debt Management Ratios Trina's Trikes, Inc. reported a debt-to-equity ratio of 1.82 times at the end of 2008. If the firm's total debt at year-end was $9.10 million, how much equity does Trina's Trikes have?

Reference no: EM131959894

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