Rank the Interest Sensitivity of the Following from the Most

question 74

Multiple Choice

Rank the interest sensitivity of the following from the most sensitive to an interest rate change to the least sensitive:
I. 8% coupon, noncallable 20-year maturity par bond
II. 9% coupon, currently callable 20-year maturity premium bond
III. Zero-coupon 30-year maturity bond

• A) I, II, III
• B) II, III, I
• C) III, I, II
• D) III, II, I

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Definitions:

Social Anxiety Disorder

A mental health disorder characterized by significant anxiety or fear of being judged, negatively evaluated, or rejected in a social or performance situation.

Avoidant

Pertaining to a pattern of social inhibition, feelings of inadequacy, and hypersensitivity to negative evaluation.

Dynamic Self-Regulatory

The ongoing process of controlling one’s behavior, emotions, or thoughts in response to changing situations or in pursuit of personal goals.

Self-Esteem Regulation

The process of maintaining and adjusting one’s feelings of self-worth and self-value in response to social interactions and personal achievements.