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Would bond price elasticity suggest higher price sensitivity

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Reference no: EM133012575

Question 1: Explain the concept of bond price elasticity. Would bond price elasticity suggest a higher price sensitivity for zero-coupon bonds or high-coupon bonds that are offering the same yield to maturity? Why? What does this suggest about the market value volatility of mutual funds containing zero-coupon Treasury bonds versus high-coupon Treasury bonds?

Reference no: EM133012575

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