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Which of the following bonds has the greatest interest-rate risk? A.5-year 3% semi-annual coupon with a yield of 6% B.5-year 3% semi-annual coupon with a
Which of the following bonds has the greatest interest-rate risk?
A.5-year 3% semi-annual coupon with a yield of 6%
B.5-year 3% semi-annual coupon with a yield of 4%
C.5-year 3% semi-annual coupon with a yield of 8%
D.5-year 3% semi-annual coupon with a yield of 5%
Can you also explain in detail why it is the correct answer?
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