Which One of the Following Bonds Is the Least Sensitive

question 29

Multiple Choice

Which one of the following bonds is the least sensitive to interest rate risk?

• A) 3-year; 4 percent coupon
• B) 3-year; 6 percent coupon
• C) 5-year; 6 percent coupon
• D) 7-year; 6 percent coupon
• E) 7-year; 4 percent coupon

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Definitions:

The Good Life

A concept describing a life filled with happiness, well-being, and prosperity, often including moral and ethical richness.

Virtue Ethics

An approach to ethics that emphasizes the character of the moral agent rather than the consequences or rules governing their actions.

Positive Character Traits

Attributes or qualities that are morally good or beneficial in nature.

Sarbanes-Oxley Act

A U.S. federal law enacted to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to securities laws.