1 shorter maturities have low risk so there interest rate rate hav dnt there long term maturities to attract buyers
bcz long term maturities have more risk
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yeild if u purchase ahigher grade, lower yeild bond you exposed to less default risk and u hav achance to getting higher all of the prominced coupon payments
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so in both these case A is better
COUPAN PAYMENT: A bond with semi annual payments would have higher price then bond A WITH ANNUAL PRICE WHEN THEY BOTH ARE SELLING in general bonds semi annual payments is more sensitive to changes in market interest rate.
On Wed, Nov 28, 2012 at 7:49 PM, Mirza Irfan <mirzairfan287@gmail.com> wrote:
salami have need MGT 201 GDB arrgently--
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MIRZA IRFAN BAIG
MBA - 2ND SEMESTER
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