Which One of the Following Bonds Has the Greatest Interest

question 104

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

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Definitions:

Customers

individuals or entities that purchase goods or services from a business or seller.

Repeat Business

The act of a customer returning to purchase goods or services from a business after their initial transaction.

Photograph

An image created by capturing light on a photosensitive surface such as film or a digital sensor.

Revise Their Choice

The act of reconsidering and potentially altering one's decision based on new information or reflection.