Is an option-free bond’s price sensitivity

问题单项选择题

Is an option-free bond’s price sensitivity positively correlated with the: Bond’s coupon rate Level of market interest rates（）①A. No Yes ②B. No No ③C. Yes No

A. ①

B. ②

C. ③

答案

参考答案：B

解析：

An option-free bond’s price sensitivity (interest rate risk) is greater when both the coupon rate and level of market interest are low; price sensitivity is negatively correlated with both factors.