All Other Things Being Equal the Interest Rate Risk of a Fixed

question 308

Multiple Choice

All other things being equal the interest rate risk of a fixed coupon bond is:

• A) greater, the higher the coupon and the longer the term
• B) greater, the lower the coupon and the longer the term
• C) lower, the lower the coupon and the shorter the term
• D) lower, the higher the coupon and the longer the term

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