Which of the Following Bonds Has the Greatest Price Risk

question 23

Multiple Choice

Which of the following bonds has the greatest price risk?

• A) A 10-year $100 annuity.
• B) A 10-year,$1,000 face value,zero coupon bond.
• C) A 10-year,$1,000 face value,10% coupon bond with annual interest payments.
• D) All 10-year bonds have the same price risk since they have the same maturity.
• E) A 10-year,$1,000 face value,10% coupon bond with semiannual interest payments.