assignmentcafe.com – Risk averse investors would take risks only if suitably compensated and therefore they would choose to minimize risk. Such a risk averse investor will prefer to invest money in which of the following bonds to minimize interest rate Price risk: 2022 latest answers

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Risk averse investors would take risks only if suitably compensated and therefore they would choose to minimize risk. Such a risk averse investor will prefer to invest money in which of the following bonds to minimize interest rate Price risk:

 

Group of answer choices

 

2-year maturity, 10 percent coupon bonds.

 

20-year maturity, 6 percent coupon bonds.

 

2-year maturity, 7 percent coupon bonds.

 

20-year maturity, zero coupon bonds.

 

5-year maturity, 7 percent coupon bonds.