Rank the Following Bonds, from Highest to Lowest Interest Rate

question 88

Multiple Choice

Rank the following bonds, from highest to lowest interest rate risk: 2-year zero-coupon, 2-year 5 percent coupon bond, 30-year 5 percent coupon bond, 30-year, zero-coupon bond.

• A)30-year, zero-coupon bond, 30-year 5 percent coupon bond, 2-year 5 percent coupon bond, 2-year zero-coupon bond
• B)2-year 5 percent coupon bond, 2-year zero-coupon bond, 30-year 5 percent coupon bond, 30-year zero-coupon bond
• C)30-year, zero-coupon bond, 30-year 5 percent coupon bond, 2-year zero-coupon bond, 2-year 5 percent coupon bond
• D)30-year, 5 percent coupon bond, 30-year zero-coupon bond, 2-year 5 percent coupon bond, 2-year zero-coupon bond

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Definitions:

Interneuron

Association cell interposed between a sensory neuron and a motor neuron; in mammals, interneurons constitute most of the brain’s neurons.

Motor Neuron

Cell that carries efferent information from the brain and spinal cord to make muscles contract.

Retrograde Messages

Signals that move backward across the synapse from the postsynaptic cell to the presynaptic cell, often involved in the modulation of neurotransmitter release.

Synapse Structure

The synapse structure refers to the complex architecture of the junction between two neurons, encompassing neurotransmitter release, reception, and signal processing areas.