Which One of the Following Bonds Is the Most Sensitive

question 96

Multiple Choice

Which one of the following bonds is the most sensitive to changes in market interest rates?

• A)5-year, zero coupon
• B)5-year, 5 percent coupon
• C)5-year, 8 percent coupon
• D)10-year, zero coupon
• E)10-year, 5 percent coupon

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Definitions:

Polymers

Large molecules composed of repeated subunits (monomers), which can exhibit a wide range of physical and chemical properties depending on their composition and structure.

Polymer

A large molecule comprised of many repeated subunits, known as monomers, bonded together.

Reaction

A method where reactants transform into products possessing novel attributes.

Dacron

A synthetic polyester fiber known for its strength, durability, and resistance to stretching and shrinking.