Question
YTM on Beka Company bonds is 7%. Yield changes to 10%. YTM on Ashley Corp bonds is 6%. Yield changes to 10%.
If you use (modified) duration to calculate the bond price after the yield change occurs, which of the above will be further "off" from the actual bond price? Why?
The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.