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Which of the following bonds has the most interest rate risk
Course:- Finance Basics
Reference No.:- EM13298365





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Explain briefly the difference between interest rate ( or price) risk and reinvestment rate risk. Which of the following bonds has the most interest rate risk ?

* A 5-year bond with a 9% annual coupon
* A 5-year bond with a zero coupon
* A 10-year bond with a 9% annual coupon
* A 10-year bond with a zero coupon

 




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