Ask Question
20 September, 00:17

Which of the following bonds is the most sensitive to changes in market interest rates? A) 5-year, zero couponB) 5-year, 5 percent couponC) 5-year, 8 percent couponD) 10-year, zero couponE) 10-year, 5 percent coupon

+5
Answers (1)
  1. 20 September, 00:35
    0
    D) 10-year, zero coupon

    Explanation:

    The zero coupon bonds with longer maturity period are more sensitive to interest rate changes than coupon payments bonds with the same maturity date and zero coupon bonds with shorter maturity periods.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which of the following bonds is the most sensitive to changes in market interest rates? A) 5-year, zero couponB) 5-year, 5 percent couponC) ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers