Question
Which of the following statements is CORRECT? A zero coupon bond of any maturity will have more price risk than any coupon bond, even a
Which of the following statements is CORRECT?
A zero coupon bond of any maturity will have more price risk than any coupon bond, even a perpetuity. | ||
If their maturities and other characteristics were the same, a 5% coupon bond would have more price risk than a 10% coupon bond. | ||
A 10-year coupon bond would have more reinvestment risk than a 5-year coupon bond, but all 10-year coupon bonds have the same amount of reinvestment risk. | ||
A 10-year coupon bond would have more price risk than a 5-year coupon bond, but all 10-year coupon bonds have the same amount of price risk. | ||
If their maturities and other characteristics were the same, a 5% coupon bond would have less price risk than a 10% coupon bond. |
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