All Else Equal, Which Bond Will Tend to Have the Most

question 323

Multiple Choice

All else equal, which bond will tend to have the most stable market value if interest rates fluctuate?

• A) Zero-coupon, short-term bond.
• B) Floating-rate, short-term bond.
• C) Long-term, low coupon bond.
• D) AAA rated, intermediate term bond.
• E) Canadian Government bond.