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1. Which one of the following bonds is the least sensitive to interest rate risk? A. 1-year; 4 percent coupon B. 1-year; 6 percent coupon

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1. Which one of the following bonds is the least sensitive to interest rate risk? A. 1-year; 4 percent coupon B. 1-year; 6 percent coupon C. 5-year; 6 percent coupon D. 7-year; 6 percent coupon E. 7-year; 4 percent coupon 2. The bonds issued by Stainless Tubs bear an 12 percent coupon, payable semiannually. The bonds mature in 15 years and have a $1,000 face value. Currently, the bonds sell for $900. What is the vield to maturity? A. 6.36 percent B. 8.51 percent C. 12.21 percent D. 12.72 percent E. 13.58 percent

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