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You are investing in a bond and you would like to minimize your interest rate risk. Which one of these bonds would you choose? Multiple

You are investing in a bond and you would like to minimize your interest rate risk. Which one of these bonds would you choose?

Multiple Choice

  • 10-year maturity; 2% coupon

  • 1-year maturity; 2% coupon

  • 10-year maturity; 10% coupon

  • 1-year maturity; 10% coupon

  • 2-year maturity; 2% coupon

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