Multiple Choice
Which one of the following bonds has the greatest interest rate risk?
A) 10-year, zero-coupon
B) 10-year, 8% coupon
C) 20-year, zero-coupon
D) 20-year, 4% coupon
E) 20-year, 8% coupon
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q99: Provide an appropriate definition of a note.
Q100: The Fisher effect formula is comprised of
Q101: Provide an appropriate definition of deferred call.
Q102: A sinking fund is used to pay
Q103: You presently own stock that you purchased
Q105: Which bond would most likely possess the
Q106: J&J Manufacturing just issued a bond with
Q107: The term structure of interest rates includes
Q108: Investors who purchased bonds several years ago
Q109: Provide an appropriate definition of real rates.