Which of the Following Statements Is Most Correct

question 65

Multiple Choice

Which of the following statements is most correct?

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

---

Definitions:

Corporate Voice

The unique tone and style of communication that distinguishes a company or brand in its written and spoken messages.

Large Audiences

A significantly sized group of people who gather in person or connect via media to receive information, entertainment, or other content.

Three-Step Process

A methodological approach typically broken into three sequential phases to achieve a task or solve a problem.

IM

Represents Instant Messaging, a form of real-time text-based communication between two or more parties.