Question

Which of the following bonds has the greatest price risk? Select one: a. A 10-year, $1,000...

Which of the following bonds has the greatest price risk?

Select one:

a. A 10-year, $1,000 face value, 10% coupon bond with annual interest payments.

b. A 10-year, $1,000 face value, zero coupon bond.

c.

A 10-year $100 annuity.

d. All 10-year bonds have the same price risk since they have the same maturity.

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