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Question 5: Which of the following contracts has the most price risk? The most reinvestment risk? 7-year bond with a 5% coupon 1-year bond with
Question 5: Which of the following contracts has the most price risk? The most reinvestment risk?
7-year bond with a 5% coupon
1-year bond with a 12% coupon
3-year bond with a 5% coupon
15-year zero coupon bond
15-year bond with a 10% coupon
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