Question

Which of the following bonds has the greatest price risk? a. A 10-year $100 annuity. b. A 10-year, $1,000 face value, zero coupon bond. c. A 10-year, $1,000 face value,

10% coupon bond with annual interest payments. d. All 10-vear bonds have the same price risk since they have the same maturity, e. A 10-year, $1,000 face value, 10% coupon bond with semiannual interest payments.

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