All other risk being equal, which of the following bonds would have the highest interest rate? a low coupon bond of 100 years to maturity a high coupon bond of 100 years to maturity a high coupon bond or 10 years to maturity a low coupon bond or 10 years to maturity none of the above
All other risk being equal, which of the following bonds would have the highest interest rate? a low coupon bond of 100 years to maturity a high coupon bond of 100 years to maturity a high coupon bond or 10 years to maturity a low coupon bond or 10 years to maturity none of the above
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
All other risk being equal, which of the following bonds would have the highest interest rate?
a low coupon bond of 100 years to maturity
a high coupon bond of 100 years to maturity
a high coupon bond or 10 years to maturity
a low coupon bond or 10 years to maturity
none of the above
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