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Question 3 (3.75 points) Consider a highly liquid, 5 year, 6.5% semiannual coupon, AAA rated corporate bond callable at 102% after 2 years. Assume the
Question 3 (3.75 points) Consider a highly liquid, 5 year, 6.5% semiannual coupon, AAA rated corporate bond callable at 102% after 2 years. Assume the bond was issued today. During the first year, an investor would be least concerned with: A) credit risk B) prepayment risk C) interest rate risk
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