Rank the Interest Sensitivity of the Following from Most Sensitive

question 28

Multiple Choice

Rank the interest sensitivity of the following from most sensitive to an interest rate change to the least sensitive.
I.8% coupon,noncallable 20 year maturity,par bond
II.9% coupon,currently callable 20 year maturity,premium bond
III.Zero coupon,30 year maturity bond

• A) I, II, III
• B) II, III, I
• C) III, I, II
• D) III, II, I

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Definitions:

Sizes

The dimensions, proportions, or magnitude of objects, expressed in terms of volume, area, or length.

Stimulus Dimension

A specific aspect of a stimulus, such as color or shape, which can be detected and processed by the sensory system.

Preoperational Stage

A stage in Piaget’s theory of cognitive development, typically occurring from ages 2 to 7, characterized by the development of language and symbolic thinking but not yet logical reasoning.

Animistically

Characterized by the belief that non-human entities, like animals, plants, and inanimate objects, possess a spiritual essence or soul.