Annual yield and return advantage

[johntavv]

On the Schweser 2015 mock exam 2, pm, question 27, it says the Annual yield and return advantage of Nakhon is 0.7%. The yield change required for breakeven of Nakhon is 0.0959%. The Yield change required for breakeven of Powhatan is -0.16%.
So why is Powhatan a more desirable bond? Is it because Powhatan requires a larger yield change before it gets to breakeven?

 

[cpk123]

return advantage of Nakhon = 0.7%
yield change required to breakeven = 0.0959%
So Duration * Yield change to break even = return advantage
So Duration of the Nakhon bond = 0.7/ 0.0959 = 7.3
while duration of the powhatan bond is negative …