Which of the bonds has the smallest price risk

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Problem 1: Which of the following bonds has the smallest price risk?

a. A 5-year 5% annual coupon bond with a $1,000 maturity value.

b. A 3-year 5% annual coupon bond with a $1,000 maturity value.

c. A 10-year 7% annual coupon bond with a $1,000 maturity value.

d. A 3-year 10% annual coupon bond with a $1,000 maturity value.

e. A 5-year zero coupon bond with a $1,000 maturity value.

Reference no: EM132957057

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