Which of the following bonds has the greatest interest rate price risk?
A. A 10-year, $1,000 face value, zero coupon bond.
B. A 10-year, $1,000 face value, 10% coupon bond with annual interest payments.
C. All 10-year bonds have the same price risk since they have the same maturity.
D. A 10-year, $1,000 face value, 10% coupon bond with semiannual interest payments.
Answer: A
You might also like to view...
The actual physical flow of production will depend on the cost allocation method, such as the FIFO costing method or the average costing method, chosen by the company
Indicate whether the statement is true or false
In which of the following cases is the direct organization approach most appropriate?
A) Asking your boss for an extension on an assignment B) Recommending a controversial change in departmental procedure to your boss C) Requesting a day off during your company's busy season D) Explaining why your team failed to catch a problem E) Sending a status report indicating that you are on schedule for an assignment
Technology that allows multitasking is likely to result in more efficient and accurate workplace communication
Indicate whether the statement is true or false
In the continuum of leadership behavior, ____ leadership represents a manager who simply makes a decision and announces it.
a. Boss-centered b. Task-centered c. Subordinate-centered d. Employee-centered