Question
Which of the following statements is correct? [CH-6] a A 10-year bond would have more interest rate price risk than a 5-year bond, but all
Which of the following statements is correct? [CH-6] a A 10-year bond would have more interest rate price risk than a 5-year bond, but all 10-year bonds have the same interest rate price risk. b A 10-year bond would have more reinvestment rate risk than a 5-year bond, but all 10-year bonds have the same reinvestment rate risk. c If their maturities were the same, a 5 percent coupon bond would have more interest rate price risk than a 10 percent coupon bond. d If their maturities were the same, a 5 percent coupon bond would have less interest rate price risk than a 10 percent coupon bond. e Zero-coupon bonds have more interest rate price risk than any other type bond, even perpetuities. Select one: a b c d e
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