1. Rank the following bonds from the least to the greatest reinvestment risk and justify your answers.
a. A 10-year bond with a 5.25% coupon.
b. A 10-year bond with a 6.75% coupon.
c. A 15-year bond with a 6.75% coupon.
d. A 15-year bond with a zero-coupon.
2. The Old Corner Grocery brags that its customer retention rate is 88%. What is the average customer lifetime in years that goes with a retention rate like that? Rounding: 1 decimal place.
3. Tiger Telecom's annual customer retention rate is 74.9%. What is the churn rate that goes with Tiger Telecom's retention rate? Rounding: tenth of a percent.