In which of the following will a change in interest rates cause the greatest price fluctuation?

In which of the following will a change in interest rates cause the greatest price fluctuation?



A) 7% AAA rated corporate bond with 8 years until maturity.

B) Series EE bond.

C) 7% 30-year U.S. Treasury bond.

D) 7% AA rated 1-year municipal note.



Answer: C) 7% 30-year U.S. Treasury bond.


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