Holding Other Factors Constant, the Interest-Rate Risk of a Coupon

question 17

Multiple Choice

Holding other factors constant, the interest-rate risk of a coupon bond is lower when the bond's

• A)term to maturity is lower.
• B)coupon rate is higher.
• C)yield to maturity is higher.
• D)term to maturity is lower and coupon rate is higher.
• E)All of the options

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Definitions:

Liability

The state of being responsible for something, especially by law, including debts or legal obligations.

Limited Liability Partnership

A partnership in which some or all partners have limited liabilities, protecting them from personal responsibility for the debts of the business.

Registered

Denotes something that has been officially recorded or listed in a public registry or database, such as a trademark or a company.

Statutorily Required Filing

The obligation to submit official documents or information to a government agency as mandated by law.