Rank the Following Bonds, from Highest to Lowest Interest Rate

question 91

Multiple Choice

Rank the following bonds, from highest to lowest interest rate risk: 2-year 6 percent coupon bond, 2-year 8 percent coupon bond, 30-year 5 percent coupon bond, 30-year, zero-coupon bond.

• A) 30-year, zero-coupon bond, 30-year 5 percent coupon bond, 2-year 8 percent coupon bond, 2-year 6 percent coupon bond
• B) 2-year 8 percent coupon bond, 2-year 6 percent coupon bond, 30-year 5 percent coupon bond, 30-year zero-coupon bond
• C) 30-year, zero-coupon bond, 30-year 5 percent coupon bond, 2-year 6 percent coupon bond, 2-year 8 percent coupon bond
• D) 30-year, 5 percent coupon bond, 30-year zero-coupon bond, 2-year 8 percent coupon bond, 2-year 6 percent coupon bond

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Definitions:

Waiting Lines

Queues formed by individuals waiting to purchase goods, receive services, or participate in some activity.

Healthcare Treatments

Medical interventions, procedures, and services provided to diagnose, treat, or manage diseases, injuries, or other health conditions.

Medical Services

These refer to the diagnostic, therapeutic, and rehabilitative services provided by health professionals to treat patients and maintain their well-being.

Third Party

An entity that is involved in a transaction or agreement but is neither the principal nor the direct beneficiary, often providing intermediary services.