Which of the following bonds has the highest interest rate risk? A. A 10-year zero-coupon bond. B.

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Which of the following bonds has the highest interest rate risk?

A. A 10-year zero-coupon bond.
B. A 5-year zero-coupon bond.

C. A 10-year bond with a 10 percent annual coupon.

D. A 5-year bond with 12 percent annual coupon.

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Fundamentals of Financial Management

ISBN: 978-0324664553

Concise 6th Edition

Authors: Eugene F. Brigham, Joel F. Houston

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Posted Date: Jun 25, 2022 01:46 AM

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Which of the following bonds has the highest interest rate risk? A. A 10-year zero-coupon bond. B.

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The Answer is C If the bond has lower coupon and long maturity the interest rate risk wil... View the full answer

Fundamentals of Financial Management

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