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Of These Choices, a Risk-Adverse Investor Who Prefers to Minimize

Question 39

Multiple Choice

Of these choices, a risk-adverse investor who prefers to minimize interest rate risk is most apt to invest in:


A) 5-year, 7 percent coupon bonds.
B) 20-year, 6 percent coupon bonds.
C) 20-year, zero coupon bonds.
D) 2-year, 7 percent coupon bonds.
E) 3-year, zero coupon bonds.

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