Time-to-maturity bonds due to coupon repayment uncertainty

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Reference no: EM13923684

Assume that interest rates exhibit an unexpected increase of 1%, in general, we would expect bond prices to ________. However, we would likely see that the price change of ________ time-to-maturity bonds be greater than the price change of ________ time-to-maturity bonds due to coupon repayment uncertainty.

a. Decrease, Longer, Shorter

b. Decrease, Shorter, Longer

c. Increase, Longer, Shorter

d. Increase, Shorter, Longer

Reference no: EM13923684

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