Which one of the following bonds is the most sensitive to changes in market interest rates?
A. 5-year, zero coupon
B. 5-year, 5 percent coupon
C. 5-year, 8 percent coupon
D. 10-year, zero coupon
E. 10-year, 5 percent coupon
Ans: D. 10-year, zero coupon
Business
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In using the capitalization process, which of the following cannot be deducted to determine the net income?
A: A management fee; B: Maintenance expense; C: Mortgage interest; D: Vacancies.
Business
The FOMC does not actually carry out securities purchases or sales
Indicate whether the statement is true or false
Business