Which One of the Following Bonds Would Be Likely to Exhibit

question 68

Multiple Choice

Which one of the following bonds would be likely to exhibit a greater degree of interest rate risk?

• A)a zero-coupon bond with 20 years until maturity
• B)a coupon-paying bond with 20 years until maturity
• C)a floating-rate bond with 20 years until maturity
• D)a zero-coupon bond with 30 years until maturity

---

Definitions:

Consumer Goods

Products and services that are bought for personal or household use.

Leonid Brezhnev

A Soviet politician who led the Soviet Union as General Secretary of the Communist Party from 1964 until his death in 1982.

Soviet Policy

The political strategy or principles governing the Soviet Union, particularly during the Cold War era, including approaches to economy, international relations, and internal governance.

Communist Orthodoxy

The strict adherence to the principles and doctrines of classical Marxism-Leninism within communist ideologies and practices.