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Which of the following bonds has the greatest interest rate risk? A A 5-year callable bond with a coupon rate of 6% and a yield
Which of the following bonds has the greatest interest rate risk?
A | A 5-year callable bond with a coupon rate of 6% and a yield to maturity of 8%. |
B | A 5-year option-free bond with a coupon rate of 6% and a yield to maturity of 8%. |
C | A 10-year callable bond with a coupon rate of 3% and a yield to maturity of 6%. |
D | A 10-year option-free bond with a coupon rate of 3% and a yield to maturity of 6%. |
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