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:

SAE Metric

Refers generally to tools or system measurements that are based on the metric system and standardized by the Society of Automotive Engineers.

Data Bus

A system for exchanging data within a computer or between multiple computers.

Ground Clamp

A Ground Clamp is an electrical device used to securely connect grounding wires to a rod or the grounding system, ensuring a safe path for electricity to ground.

Battery Charger

An apparatus designed to inject energy into a rechargeable battery or secondary cell by propelling an electric current through it.