All else the same, interest rate risk is highest for bonds with variable rate coupons.

Name: All else the same, interest rate risk is highest for bonds with variable rate coupons.
Brand: Quizplus
Rating: 4.7 (49 reviews)

Question

Quizplus · Accepted Answer

Interest rate risk is highest for bonds with fixed-rate coupons because their prices are more sensitive to changes in interest rates. Variable rate coupons adjust with interest rates, reducing sensitivity to interest rate changes.

All Else the Same, Interest Rate Risk Is Highest for Bonds