Suenette wants to own bonds but also wants their market values to remain as steady as possible.Which type of bonds are best suited to her wishes?
A)High-coupon,short-term
B)Zero-coupon,long-term
C)High-coupon,long-term
D)Low-coupon,short term
E)Zero coupon,short term

Question

Quizplus · Accepted Answer

High-coupon, short-term bonds are best suited for Suenette's wishes because they are less sensitive to interest rate changes, which helps keep their market value more stable.

Suenette Wants to Own Bonds but Also Wants Their Market