Which of the Following Bonds Will Have the Greatest Price

question 115

Multiple Choice

Which of the following bonds will have the greatest price change for a given change in interest rates?

• A) 2-year, 4 percent coupon
• B) 2-year, 6 percent coupon
• C) 3-year, 4 percent coupon
• D) 4-year, 4 percent coupon
• E) 4-year, 6 percent coupon

---

Definitions:

Obedience to Authority

The psychological phenomenon where individuals comply with instructions from an authority figure, even if they might have personal objections.

Ethical Directives

Guidelines or principles designed to guide behavior in a manner consistent with ethical standards and values.

Internal Locus

A psychological concept where an individual believes they have control over their life events and outcomes rather than external forces.

Obedience to Authority

The psychological tendency of individuals to comply with the directives or orders from an authority figure, even if they may conflict with personal values.