Of these choices, a risk-adverse investor who prefers to minimize interest rate risk is most apt to invest in:
A. 5-year, 7 percent coupon bonds.
B. 20-year, 6 percent coupon bonds.
C. 20-year, zero coupon bonds.
D. 2-year, 7 percent coupon bonds.
E. 3-year, zero coupon bonds.
Ans: D. 2-year, 7 percent coupon bonds.
Business
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