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Which bond price will change more if the ytm changes

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Problem 1: Suppose Treasury Bond ABC has a face value of $1000; its coupon rate is 6%, and it will mature 10 years from today. Treasury Bond XYZ has a face value of $1000; its coupon rate is 10%, and it will mature 10 years from today. Which bond's price will change more if the YTM changes?

A. Treasury Bond ABC's price will change more

B. Treasury Bond XYZ's price will change more

C. Both bonds' prices will change by the same amount

D. It cannot be determined from the information given

E. None of the above.

Problem 2: Which of the following statement is wrong?

A) Semi-strong form of market efficiency assumes that prices reflect all publicly available information.

B) If you use the past pattern of prices to predict future prices, you believe that prices follow a random walk.

C) Behavioral finance believes that investors are not always rational.

D) The market is not strong-form efficient

E) None of the above.

Reference no: EM132816705

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