Assuming the annual interest rate

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1. Which of the following bonds has the most price risk?

A. 7-year bonds with a 5% coupon

B. 3-year bonds with a 5% coupon

C. 15-year zero coupon bonds

D. 15-year bonds with a 10% coupon

2. What is the present value of $700 to be received at the end of five years, assuming the following annual interest rate? Use Table II to answer the questions. Round your answers to the nearest cent.

5 percent, discounted annually $  

10 percent, discounted annually $  

15 percent, discounted quarterly $  

0 percent $  

Reference no: EM131977882

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