Which of the Following Bonds Will Have the Smallest Price

question 8

Multiple Choice

Which of the following bonds will have the smallest price change from the same change in interest rates, all else the same?

• A) 5-year, 10 percent coupon.
• B) 5-year, 6 percent coupon.
• C) 10-year, 10 percent coupon.
• D) 10-year, 6 percent coupon.
• E) 10-year, zero coupon.

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Definitions:

Population Pyramids

Graphical illustrations that show the distribution of various age groups in a population, typically with males on one side and females on the other.

Age Cohorts

Groups of people categorized according to their age, often used in studies to understand how different generations behave and believe.

Emotional Expression

The process by which people outwardly convey their emotions through facial expressions, gestures, vocal tones, and other forms of nonverbal communication.

Gesture

A movement of the body or limbs that expresses or emphasizes an idea, sentiment, or attitude.