Which of the following bonds has the greatest interest rate


Which of the following bonds has the greatest interest rate risk?

A A 5-year callable bond with a coupon rate of 6% and a yield to maturity of 8%.

B A 5-year option-free bond with a coupon rate of 6% and a yield to maturity of 8%.

C A 10-year callable bond with a coupon rate of 3% and a yield to maturity of 6%.

D A 10-year option-free bond with a coupon rate of 3% and a yield to maturity of 6%.

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Financial Management: Which of the following bonds has the greatest interest rate
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