document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=174513>Question 174513</A>This question is from textbook <A HREF=http://www.amazon.com/exec/obidos/ASIN/0536860521/algebrahomeworkh>Foundations of Finance</A><BR>\n" );
document.write( ": <I><SPAN STYLE=\"word-break: break-all;\"> Please advise:<BR>\n" );
document.write( "Which of the following has the highest interest rate risk?\r<BR>\n" );
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document.write( "A) a 20 yr U.S. Treasury Bond<BR>\n" );
document.write( "B) Bendix Corporations 6 month commercial paper<BR>\n" );
document.write( "C) a six month market certificate at a federally insured bank<BR>\n" );
document.write( "D) a Southwest Airlines bond maturing in 4 years.\r<BR>\n" );
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document.write( "I have eliminated A since the financial banking is from the US Gov.<BR>\n" );
document.write( "The remaining 3 options all will have a high interst rate, please help and thank you </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #129624 by </B><A HREF=/tutors/aboutme.mpl?userid=Mathtut><B>Mathtut(3670)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Mathtut><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=129624\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> both A and C are backed and insured<BR>\n" );
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document.write( "Bendix is owned by Honeywell corp who is highly diversified<BR>\n" );
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document.write( "whereas Southwest airlines is not very diversified and the airlines are VERY risky to own.<BR>\n" );
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document.write( "I would pick Southwest Airlines as the highest RISK based on current information.<BR>\n" );
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document.write( "I dont believe that either the bonds with southwest or the commercial paper with Bendix is secured....so this would be based on that premise </SPAN>\n" );
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