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Which One of the Following Bonds Is the Most Sensitive

Question 96

Multiple Choice

Which one of the following bonds is the most sensitive to changes in market interest rates?

A) 5-year, zero coupon
B) 5-year, 5 percent coupon
C) 5-year, 8 percent coupon
D) 10-year, zero coupon
E) 10-year, 5 percent coupon

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