Investment VehiclesCâu 32 / 110
Which bond carries the greatest interest rate risk, all else equal?
a.A 2-year bond with a high coupon
b.A 5-year bond with a high coupon
c.A 5-year zero-coupon bond
d.A 30-year zero-coupon bond
Giải thích
Interest rate risk increases with longer maturity and lower coupons, both of which lengthen duration. A 30-year zero-coupon bond has the longest duration and thus the greatest price sensitivity to rate changes. Shorter maturities and higher coupons reduce that sensitivity.
Luyện miễn phí toàn bộ 110 câu hỏi — không cần đăng ký.
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