SOLUTION: Please help with this trick question:
Which of the following has the highest interest rate risk?
A. A 20-year U.S. Treasury Bond
B. Bendix Corporation's month commercial paper
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-> SOLUTION: Please help with this trick question:
Which of the following has the highest interest rate risk?
A. A 20-year U.S. Treasury Bond
B. Bendix Corporation's month commercial paper
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Question 181191This question is from textbook Foundations of Finance
: Please help with this trick question:
Which of the following has the highest interest rate risk?
A. A 20-year U.S. Treasury Bond
B. Bendix Corporation's month commercial paper
C. A six month money market certificate at a federally insured bank
D. A Southwest Airlines bond maturing in 4 years
I dont think its A nor D, its B and C that have me stumped This question is from textbook Foundations of Finance
You can put this solution on YOUR website! Actually A and C are relatively safe....hardly risky at all
:
so its between B and D imo. Bendix is Highly diversified company whereas Southwest airlines is not. So I believe D is the highest interest rate risk investment.
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