Which bond has the greatest interest-rate risknbspa 15-yr


Which bond has the greatest interest-rate risk?

A) A 15-yr bond with a 4% coupon (no principal payments priot to maturity)

B) A 15-yr bond a 5% coupon (no principal payments prior to maturity)

C) a 15 yr bond with 0% coupon ( and no pricipal payments prior to maturity)

D) a 15 yr bond with a 15% coupon (principal amortizing in equal installments each year)

E) a 10 yr bond with an 11% coupon (and principal amortising in equal installments each year)

F) the bonds in B and E tie for the highest interest rate risk

G) the bonds in A,B,C and D tie for the highest interest rate risk

H) all bonds have the same interest rate risk

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Financial Management: Which bond has the greatest interest-rate risknbspa 15-yr
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