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Which One of These Bonds Is the Most Interest-Rate Sensitive

Question 5

Multiple Choice

Which one of these bonds is the most interest-rate sensitive?


A) 5-year zero coupon bond
B) 10-year zero coupon bond
C) 5-year,6 percent,annual coupon bond
D) 10-year,6 percent,semiannual coupon bond
E) 10-year,6 percent,annual coupon bond

Correct Answer:

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