Which of the Following Statements Is CORRECT

question 34

Multiple Choice

Which of the following statements is CORRECT?

• A)A zero coupon bond of any maturity will have more interest rate price risk than any coupon bond, even a perpetuity.
• B)If their maturities and other characteristics were the same, a 5% coupon bond would have more interest rate price risk than a 10% coupon bond.
• C)A 10-year coupon bond would have more reinvestment rate risk than a 5-year coupon bond, but all 10-year coupon bonds have the same amount of reinvestment rate risk.
• D)A 10-year coupon bond would have more interest rate price risk than a 5-year coupon bond, but all 10-year coupon bonds have the same amount of interest rate price risk.
• E)If their maturities and other characteristics were the same, a 5% coupon bond would have less interest rate price risk than a 10% coupon bond.

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Definitions:

Class Conflict

The strain or conflict arising in society from the contrasting economic interests and aspirations among individuals of diverse social classes.

Twentieth-century

Referring to the period from 1901 to 2000, marked by significant technological, political, and cultural changes worldwide.

Social Changes

Transformations in societal structures, behaviors, or cultural norms over time.

Scientific Revolutions

Significant transformations in the foundation of science, where new theories and discoveries fundamentally change the understanding of certain phenomena or the way science is conducted.