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Which of the following bonds has the gre...
This question was answered on Oct 19, 2010. View the Answer
Which of the following bonds has the greatest interest rate price risk? (Points :5)
A 10-year $100 annuity.
A 10-year, $1,000 face value, zero coupon bond.
A 10-year, $1,000 face value, 10% coupon bond with annual interest payments.
All 10-year bonds have the same price risk since they have the same maturity.
A 10-year, $1,000 face value, 10% coupon bond with semiannual interest payments
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Which of the following bonds has the greatest interest rate price risk? (Points :5)
A 10-year $100 annuity.
A 10-year, $1,000 face value, zero coupon bond.
A 10-year, $1,000 face value, 10% coupon...

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