Which of the Following Bonds Will Be Least Sensitive to a Change

question 32

Multiple Choice

Which of the following bonds will be least sensitive to a change in interest rates?

• A) a ten-year bond with a $2,000 face value whose yield to maturity is 5.8% and coupon rate is 5.8% APR paid semiannually
• B) a 15-year bond with a $5,000 face value whose yield to maturity is 7.4% and coupon rate is 6.2% APR paid annually
• C) a 20-year bond with a $3,000 face value whose yield to maturity is 6.0% and coupon rate is 5.4% APR paid semiannually
• D) a 30-year bond with a $1,000 face value whose yield to maturity is 5.5% and coupon rate is 6.4% APR paid annually

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Definitions:

Organizational Vision

A strategic declaration of a company's long-term objectives and purpose, meant to guide its internal decision-making.

Implementation Through Consensus

The approach of executing plans or decisions in an organization by reaching an agreement supported by all members.

Price Discrimination

A pricing strategy where companies charge different prices to different customers for the same product or service, often based on willingness to pay, market segment, or purchase location.

Supply Chain

The interconnected network of entities involved in producing, handling, and distributing a specific product, from raw materials to end consumers.