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The interest-rate risk of a non-callable bond is higher for (1) higher coupons, (2) longer maturities, (3) higher interest rates. A. (2) only B. (3)
The interest-rate risk of a non-callable bond is higher for
(1) higher coupons,
(2) longer maturities,
(3) higher interest rates.
A. (2) only
B. (3) only
C. (1) and (2) only
D. (1) and (3) only
Please choose an answer A, B, C or D and explain why that is the correct answer. Thank you.
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