Decrease the interest rate sensitivity of a bond

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Reference no: EM13811856

Which of the following combinations is assured to decrease the interest rate sensitivity of a bond?

Select one:

a. A decrease in the time to maturity and an increase in the face value

b. Increase in both the time to maturity and the coupon rate

c. Increase in the time to maturity and a decrease in the coupon rate Incorrect

d. Decrease in both the time to maturity and the coupon rate

e. Decrease in the time to maturity and an increase in the coupon rate

Reference no: EM13811856

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