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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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