The prices of bonds with ____ are most sensitive to interest rate movements.
A) high coupon payments
B) zero coupon payments
C) small coupon payments
D) None of these are correct because the size of the coupon payment does not affect the sensitivity of bond prices to interest rate movements.
Correct Answer:
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Q1: Zero-coupon bonds with a par value of
Q3: A(n)_ in the expected level of inflation
Q4: A bond with a $1,000 par value
Q5: For a bond of a given par
Q6: Assume that the price of a $1,000
Q7: A bond with a 12 percent quarterly
Q8: From the perspective of investing institutions, the
Q9: The appropriate discount rate for valuing any
Q10: A bank buys bonds with a par
Q11: The prices of short-term bonds are commonly
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