Which of the Following Statements Is Correct

question 97

Multiple Choice

Which of the following statements is correct?

• A) A 10-year bond would have more interest rate price risk than a 5-year bond,but all 10-year bonds have the same interest rate price risk.
• B) A 10-year bond would have more reinvestment rate risk than a 5-year bond,but all 10-year bonds have the same reinvestment rate risk.
• C) If their maturities were the same,a 5 percent coupon bond would have more interest rate price risk than a 10 percent coupon bond.
• D) If their maturities were the same,a 5 percent coupon bond would have less interest rate price risk than a 10 percent coupon bond.
• E) Zero-coupon bonds have more interest rate price risk than any other type bond,even perpetuities.

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Definitions:

Thylakoid Compartment

A membrane-bound compartment inside chloroplasts, found in plant cells, where photosynthesis occurs.

Cyclic Pathway

A biochemical pathway in which the starting compound is regenerated, allowing the cycle to repeat.

Photosystem I

A complex of proteins and pigments in chloroplasts that facilitates the light-driven production of NADPH in photosynthesis.

Electron Transport System

A sequence of biochemical reactions within cells that transfers electrons, producing energy.