Which of the following types of bond issues is the most price-sensitive?
A)Fixed-rate long-term bonds
B)Floating-rate bonds
C)Long-term zero-coupon bonds
D)Fixed-rate short-term bonds
E)Treasury bills

Question

Quizplus · Accepted Answer

Many junk bonds behave more like common stock than bonds and rally on good news, actual interest payments, or improving business conditions. However, in the 1990-91 recession, junk bond prices tumbled by 20-30%, while other bond values stayed firm.

Which of the Following Types of Bond Issues Is the Most