A 10-year maturity zero coupon bond will have lower price volatility than a 10-year bond with a 10 percent coupon.

Name: A 10-year maturity zero coupon bond will have lower price volatility than a 10-year bond with a 10 percent coupon.
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A 10-year maturity zero coupon bond will have higher price volatility than a 10-year bond with a 10 percent coupon because it pays no intermediate cash flows and its entire value is sensitive to changes in interest rates, making its price more volatile.

A 10-Year Maturity Zero Coupon Bond Will Have Lower Price