Which of the following bonds would have the greatest percentage increase in value if all interest rates fall by 1%?

A. 20-year, 10% coupon bond.
B. 20-year, 5% coupon bond.
C. 1-year, 10% coupon bond.
D. 20-year, zero coupon bond.
E. 10-year, zero coupon bond.


Answer: D

Business

You might also like to view...

The objective of the _______ management process is to enable organizations to be more efficient and improve the quality of decision making by providing access to reliable and secure data, information, and knowledge.

Fill in the blank(s) with the appropriate word(s).

Business

To listen effectively, ________ should be avoided.

A. focusing on central ideas B. having several systems for note taking C. withholding evaluation until the speaker's message is understood D. capitalizing on thought speed E. judging the speaker's delivery instead of the content

Business

If the offeror sells the subject of the offer to another person, the offer is ended by ____________________

Fill in the blank(s) with correct word

Business

Free cash flow is net cash provided by operating activities less capital expenditures.

Answer the following statement true (T) or false (F)

Business