Which One of the Following Bonds Is the Least Sensitive

question 29

Multiple Choice

Which one of the following bonds is the least sensitive to interest rate risk?

• A) 3-year; 4 percent coupon
• B) 3-year; 6 percent coupon
• C) 5-year; 6 percent coupon
• D) 7-year; 6 percent coupon
• E) 7-year; 4 percent coupon

Appreciate the importance of style, clarity, and organization in creating effective written documents.

Recognize and apply the principles of parallel structure in writing for better readability and coherence.

Differentiate between different types of sentences (e.g., simple, compound) and their uses in writing.

Identify and utilize the appropriate voice (active or passive) in writing to achieve desired emphasis and clarity.

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Definitions:

Average Variable Cost

The total variable cost of production divided by the quantity of output produced.

Average Total Cost

The total cost of production divided by the quantity of output produced, illustrating the average cost per unit of output.

Cost Curve

A graphical representation showing how the cost of producing a good changes with changes in the quantity of the good produced.

Cost Curve

A graphical representation that shows the costs of production as a function of the total quantity produced.