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:

Diluent

A liquid used to dissolve and dilute another substance, such as a drug.

Sublingual Medication

Drugs that are administered by being placed under the tongue for absorption through the mucous membranes into the bloodstream for faster action.

Oral Route

A method of drug administration where medication is taken through the mouth.

Hypertensive Crisis

A severe and sudden increase in blood pressure that can lead to stroke, heart attack, or other serious health issues if not promptly treated.