Which of the following statements concerning the price volatility of bonds is most accurate?
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A) |
Bonds with longer maturities have lower interest rate risk. | |
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B) |
As the yield on callable bonds approaches the coupon rate, the bond's price will approach a "floor" value. | |
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C) |
Bonds with higher coupons have lower interest rate risk. | |
Bonds with higher coupons have lower interest rate risk. Note that the other statements are false. Bonds with longer maturities have higher interest rate risk. Callable bonds have a ceiling value as yields decline. | 
发表于 2010-4-23 12:53
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