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Which type of risk is most significant for bonds? A. maturity risk risk default C. interest rate risk o, reinvestment rate risk ider two bonds,

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Which type of risk is most significant for bonds? A. maturity risk risk default C. interest rate risk o, reinvestment rate risk ider two bonds, A and B. Both bonds presently are selling at their par value of 5100 20 annually. Bond A will mature in 5 years, while bond B will mature in 6 years t selling at their value of SI,000, E interest pays yields to maturity on the two bonds change from 12% to 14%, both bonds will increase in value but bond A will increase more t both bonds will increase in value but bond B will increase more than bond A both bonds will decrease in value but bond A will decrease more than bond B A. han bond b B. C. D. both bonds will decrease in value but bond B will decrease more than bond A In an era of particularly low interest rates, which of the following bonds is most likely to be 19. called? A. zero-coupon bonds B. coupon bonds selling at a discount C. coupon bonds selling at a premium D. floating-rate bonds 20, A zero-coupon bond has a yield to maturity of 5% and a par value of S 1,000. If the bond ma in 16 years, it should sell for a price of today A. $458.11 B. $641.11 C. $89.11 D. $1,100.11

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