Which of the Following Bonds Has the Greatest Interest Rate

question 78

Multiple Choice

Which of the following bonds has the greatest interest rate price risk?

• A) A 10-year, $1,000 face value, zero coupon bond.
• B) A 10-year, $1,000 face value, 10% coupon bond with annual interest payments.
• C) All 10-year bonds have the same price risk since they have the same maturity.
• D) A 10-year, $1,000 face value, 10% coupon bond with semiannual interest payments.

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Definitions:

Client-Centered Therapy

A counseling approach emphasizing the therapist’s empathy and nondirective behavior that allows clients to lead the discussion and find their own solutions.

Marriage Counseling

A type of psychotherapy for married couples or established partners that aims to resolve conflicts, improve relationship satisfaction, and strengthen connections.

Psychoanalysis

A method of psychological therapy originated by Sigmund Freud that emphasizes the exploration of unconscious conflicts and desires.

Exposure Therapies

Behavioral techniques, such as systematic desensitization and virtual reality exposure therapy, that treat anxieties by exposing people (in imaginary or actual situations) to the things they fear and avoid.