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

question 33

Multiple Choice

Which of the following bonds will be most sensitive to a change in interest rates if all bonds have the same initial yield to maturity?

• A) a ten-year bond with a $1,000 face value whose coupon rate is 5.8% APR paid semiannually
• B) a ten-year bond with a $1,000 face value whose coupon rate is 7.4% APR paid semiannually
• C) a 20-year bond with a $1,000 face value whose coupon rate is 5.8% APR paid semiannually
• D) a 20-year bond with a $1,000 face value whose coupon rate is 7.4% APR paid semiannually

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Definitions:

Young

Used to describe individuals in the early stages of life, often implying a lack of maturity, experience, or age.

Intimate Partner Violence

Intimate Partner Violence is any form of physical, sexual, emotional, or psychological abuse that occurs between partners in an intimate relationship.

Spouses

Legally married partners committed to a conjugal relationship.

Situational Couple Violence

A pattern of physical violence between intimate partners that arises from a specific argument and is not part of a campaign to control the partner.