Multiple Choice
Holding other factors constant, the interest-rate risk of a coupon bond is higher when the bond's
A) term to maturity is lower.
B) coupon rate is higher.
C) yield to maturity is lower.
D) current yield is higher.
E) None of the options are correct.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q18: The duration of a 15-year zero-coupon bond
Q19: An 8%, 30-year corporate bond was recently
Q20: The "modified duration" used by practitioners is
Q21: The duration of a par-value bond with
Q22: Holding other factors constant, which one of
Q24: Which of the following two bonds is
Q25: The duration of a perpetuity with a
Q26: The duration of a par-valueannual bond with
Q27: The duration of a bond normally increases
Q28: Indexing of bond portfolios is difficult because<br>A)