Price volatility is greatest on which one of the following investments?

Question

Quizplus · Accepted Answer

Zero-coupon bonds have the highest price volatility as they offer no periodic interest payments and rely solely on the appreciation of the bond for returns. This means that even a small change in interest rates can have a significant impact on the bond's value. The other options, commercial paper, Treasury notes, and Treasury bills, have lower price volatility as they are generally short-term debt instruments with lower risk profiles.

Price Volatility Is Greatest on Which One of the Following