Which of the Following Bonds Is Most Susceptible to Interest

question 49

Multiple Choice

Which of the following bonds is most susceptible to interest rate risk from an investor's perspective?

• A)short-term, high-coupon
• B)short-term, low-coupon
• C)long-term, high-coupon
• D)long-term, zero-coupon

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Definitions:

Inventory Items

Goods and materials that a business holds for the ultimate goal of resale or production.

List Price

The suggested retail price of a product or service, before any discounts or adjustments.

Delivery Truck

A vehicle specifically designed and used for transporting goods from one location to another.

Undepreciated Cost

The original cost of an asset minus any accumulated depreciation.