Question
which bond has the greatest interest-rate risk? A) A 15-yr bond with a 4% coupon (no principal payments priot to maturity) B) A 15-yr bond
which bond has the greatest interest-rate risk?
A) A 15-yr bond with a 4% coupon (no principal payments priot to maturity)
B) A 15-yr bond a 5% coupon (no principal payments prior to maturity)
C) a 15 yr bond with 0% coupon ( and no pricipal payments prior to maturity)
D) a 15 yr bond with a 15% coupon (principal amortizing in equal installments each year)
E) a 10 yr bond with an 11% coupon (and principal amortising in equal installments each year)
F) the bonds in B and E tie for the highest interest rate risk
G) the bonds in A,B,C and D tie for the highest interest rate risk
H) all bonds have the same interest rate risk
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