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1. Which of the following bonds has the highest interest rate risk (all else equal)? a. 2.5%, 5-years to maturity b. 0% Coupon, 30-years to

1. Which of the following bonds has the highest interest rate risk (all else equal)? a. 2.5%, 5-years to maturity b. 0% Coupon, 30-years to maturity c. 0%, 5-years to maturity d. 2.5% Coupon, 30-years to maturity?

2.

A 10-year Treasury Note is an example of:

a.

An interest only loan

b.

A pure discount loan

c.

An amortized loan

d.

None of the above

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