Multiple Choice
Which one of these bonds is subject to the greatest interest rate risk?
A) 5-year,zero coupon bond
B) 5-year bond with a 4.5 percent coupon rate
C) 5-year bond with a 5 percent coupon rate
D) 10-year,zero coupon bond
E) 10-year,5 percent coupon bond
Correct Answer:
Verified
Correct Answer:
Verified
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