Which of the Following Bonds Will Be Most Sensitive to a Change

question 51

Multiple Choice

Which of the following bonds will be most sensitive to a change in interest rates?

• A) a 15-year bond with a $5000 face value whose yield to maturity is 7.4% and coupon rate is 6.2% APR paid annually
• B) a ten-year bond with a $2000 face value whose yield to maturity is 5.8% and coupon rate is 5.8% APR paid semiannually
• C) a 30-year bond with a $1000 face value whose yield to maturity is 5.5% and coupon rate is 6.4% APR paid annually
• D) a 20-year bond with a $3000 face value whose yield to maturity is 6.0% and coupon rate is 5.4% APR paid semiannually

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Definitions:

Family Therapy

A form of psychotherapy that aims to treat familial issues through collaborative therapeutic efforts involving multiple family members.

Social System

A complex set of human relationships interacting in many ways within a community or society, governed by their own norms and structures.

Cognitive Therapy

A form of psychotherapy that emphasizes the role of thought patterns and beliefs in influencing behavior and emotions, aiming to change cognitive distortions and maladaptive thinking to improve mental health.

Self-help Groups

Peer-led organizations where members share common experiences, challenges, or conditions to provide mutual support and aid.