Which of the Following Bonds Would Be Likely to Exhibit

question 108

Multiple Choice

Which 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

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Definitions:

Business Ethics

The study and examination of moral and ethical principles in the business environment, focusing on the conduct of individuals and organizations.

Age

A measure of the length of time that an individual has lived or a thing has existed.

Ethical Decision Making

The act of examining and deciding upon different possibilities in accordance with principles of ethics.

Organizational Factors

Elements within a workplace that can impact the flow and success of operations, including company culture, employee behaviors, and work environment.