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

Name: A ten-year maturity zero coupon bond will have lower price volatility than a ten-year bond with a 10% coupon.
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Quizplus · Accepted Answer

This is because zero coupon bonds have only one cash flow at maturity, while coupon bonds have multiple cash flows from the coupon payments. The variability in the timing and amount of these cash flows creates greater price volatility for coupon bonds.

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