Rank the following bonds, from highest to lowest interest rate risk: 2-year 6 percent coupon bond, 2-year 8 percent coupon bond, 30-year 5 percent coupon bond, 30-year, zero-coupon bond.

Multiple Choice

• 30-year, zero-coupon bond, 30-year 5 percent coupon bond, 2-year 6 percent coupon bond, 2-year 8 percent coupon bond

• 2-year 8 percent coupon bond, 2-year 6 percent coupon bond, 30-year 5 percent coupon bond, 30-year zero-coupon bond

• 30-year, zero-coupon bond, 30-year 5 percent coupon bond, 2-year 8 percent coupon bond, 2-year 6 percent coupon bond

• 30-year, 5 percent coupon bond, 30-year zero-coupon bond, 2-year 8 percent coupon bond, 2-year 6 percent coupon bond