Which One of the Following Bonds Is the Least Sensitive

question 29

Multiple Choice

Which one of the following bonds is the least sensitive to interest rate risk?

• A) 3-year; 4 percent coupon
• B) 3-year; 6 percent coupon
• C) 5-year; 6 percent coupon
• D) 7-year; 6 percent coupon
• E) 7-year; 4 percent coupon

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Definitions:

Disaccharides

Carbohydrates composed of two monosaccharide molecules bonded together, such as sucrose and lactose.

Stomach Ulcers

Sores that develop on the lining of the stomach, upper small intestine, or esophagus, often resulting from Helicobacter pylori infection or the use of NSAIDs.

Helicobacter Pylori

A type of bacteria that infects the stomach lining and is associated with ulcers and some forms of stomach cancer.

Escherichia Coli

A type of bacteria commonly found in the intestines of humans and animals, some strains of which can cause food poisoning.