Multiple Choice
Which of the following bonds has the greatest interest rate price risk?
A) A 10-year, $1,000 face value, zero coupon bond.
B) A 10-year, $1,000 face value, 10% coupon bond with annual interest payments.
C) All 10-year bonds have the same price risk since they have the same maturity.
D) A 10-year, $1,000 face value, 10% coupon bond with semiannual interest payments.
E) A 10-year $100 annuity.
Correct Answer:
Verified
Correct Answer:
Verified
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