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

question 89

Multiple Choice

Which of the following bonds will be most 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:

Attention Deficit/Hyperactivity Disorder

A neurodevelopmental disorder characterized by problems such as inattentiveness, impulsivity, and hyperactivity.

Corporal Punishment

Physical punishment intended as a disciplinary measure, such as spanking or paddling.

Self-Control Strategies

Techniques and methods used by individuals to regulate their emotions, thoughts, and behaviors in challenging situations.

Behavioral Management

strategies and practices employed to influence an individual's actions and behaviors in a positive and constructive manner.