Price sensitivity\ Homework

*

Answered\ Rank the following bonds in order from lowest interest rate risk to highest. Each is currently selling at a

6%

yield to maturity.\ 20-year maturity with an

8%

coupon.\ 20-year maturity with a

12%

coupon.\ 20-year maturity with a

0%

coupon.\ 10-year maturity with a

15%

coupon.\ 12-year maturity with a

12%

coupon.\ Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.\ a

2,1,3,4,5

\

4,5,2,1,3

\ c

3,1,2,5,4

\ d

4,2,5,1,3

\

3,1,5,4,2

Rank the following bonds in order from lowest interest rate risk to highest. Each is currently selling at a 6% yield to maturity. 1. 20-year maturity with an 8% coupon. 2. 20 -year maturity with a 12% coupon. 3. 20 -year maturity with a 0% coupon. 4. 10-year maturity with a 15% coupon. 5. 12-year maturity with a 12% coupon