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An investor is concerned about interest rate risk. Which of the following four bonds (similar except for yield and maturity) has the least interest rate
An investor is concerned about interest rate risk. Which of the following four bonds (similar except for yield and maturity) has the least interest rate risk? The bond with:
A. | 6% yield and 10-year maturity. | |
B. | 6% yield and 20-year maturity. | |
C. | 5% yield and 10-year maturity. | |
D. | 5% yield and 20-year maturity. |
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