BONDS
Calculate PV of Bonds with $100,000 par value
Bond 1: Term 1 yr coupon rate 2% market rate 2%
Bond 2: Term 10 yr coupon rate 2% market rate 2%
Bond 3: Term 1 yr coupon rate 10% market rate 10%
Bond 4: Term 10 yr coupon rate 10% market rate 10%
Which bond has the most volatile price and why?