PART A:

Which bond is most exposed to reinvestment rate risk?

An 8-year bond with a 9% coupon.

A 2-year bond with a 15% coupon.

A 3-year bond with a 10% coupon.

A 10-year zero coupon bond.

A 10-year bond with a 10% coupon

PART B:

Which of the following items is not a current asset?

Accounts receivable

Inventory

Bonds

Cash

All of these are current assets.