You have the following two bonds:

15-year, 6% coupon

12-year, 3% coupon?

At an interest rate of 5% which of the two bonds is riskier?

What could you do to help make this decision?

Generally speaking, which bond would you want to select if you think interest rates will be dropping? Premium or discount? Explain.

You have the following two bonds: (1) 15-year, 6\% coupon (2) 12-year, 3% coupon? (1) At an interest rate of 5% which of the two bonds is riskier? (2 What could you do to help make this decision? 3 Generally speaking, which bond would you want to select if you think interest rates will be dropping? Premium or discount? Explain