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In capital budgeting term of bond which has great sensitivity to...

This question belongs to Commerce Financial Management
Financial Management
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In capital budgeting, term of bond which has great sensitivity to interest rates is

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Correct Answer: Option A
In capital budgeting, term of bond which has great sensitivity to interest rates is long-term bonds. Bond with a maturity period of more than 15 years. Long bonds pay higher interest rates but have greater credit and inflation risk. Also called long bond
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