Rank the Following Bonds, from Highest to Lowest Interest Rate

question 111

Multiple Choice

Rank the following bonds, from highest to lowest interest rate risk: 2-year zero coupon, 2-year 5% coupon bond, 30-year 5% coupon bond, 30-year, zero coupon bond.

• A) 30-year, zero coupon bond, 30-year 5% coupon bond, 2-year 5% coupon bond, 2-year zero coupon bond
• B) 2-year 5% coupon bond, 2-year zero coupon bond, 30-year 5% coupon bond, 30-year zero coupon bond
• C) 30-year, zero coupon bond, 30-year 5% coupon bond, 2-year zero coupon bond, 2-year 5% coupon bond
• D) 30-year, 5% coupon bond, 30-year zero coupon bond, 2-year 5% coupon bond, 2-year zero coupon bond

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Definitions:

Chest Wall

The structure consisting of the ribs, sternum, and spine that surrounds and protects the thoracic cavity and its contents.

Breast Tissue

Specialized tissue in the breast that includes glands for milk production and the fat surrounding these glands.

ECG Electrodes

Small, adhesive sensors placed on the skin to record electrical activity of the heart during an Electrocardiogram (ECG) test.

Arrhythmias

Irregular heartbeats or rhythms, which can be harmless or a sign of serious heart conditions, requiring medical attention.