问题如下:
Which bond will most likely experience the greatest percentage change in price if the market discount rates for all three bonds increase by 100 basis points?
选项:
A.Bond A
B.Bond B
C.Bond C
解释:
A is correct.
Bond A will likely experience the greatest percent change in price due to the coupon effect and the maturity effect. For two bonds with the same time-to-maturity, a lower-coupon bond has a greater percentage price change than a higher-coupon bond when their market discount rates change by the same amount. Generally, for the same coupon rate, a longer-term bond has a greater percentage price change than a shorter-term bond when their market discount rates change by the same amount. Relative to Bond C, Bond A and Bond B both offer the same lower coupon rate of 6%; however, Bond A has a longer time-to-maturity than Bond B. Therefore, Bond A will likely experience the greater percentage change in price if the market discount rates for all three bonds increase by 100 basis points.
老师 请解释一下这个概念