Which One of These Bonds Is the Most Interest-Rate Sensitive

question 51

Multiple Choice

Which one of these bonds is the most interest-rate sensitive?

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

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Definitions:

Spinal Cord

The long, thin, tubular structure made up of nervous tissue, which extends from the medulla oblongata in the brainstem to the lumbar region of the vertebral column, acting as the primary pathway for information connecting the brain and peripheral nervous system.

Parasympathetic

Part of the autonomic nervous system responsible for conserving energy and promoting restful states by slowing the heart rate and increasing intestinal and gland activity.

Somatic Nervous System

The part of the peripheral nervous system associated with the voluntary control of body movements via skeletal muscles.

Peripheral Nervous System

The part of the nervous system that consists of nerves and ganglia outside of the brain and spinal cord, connecting the central nervous system to limbs and organs.