Which of the following bonds has the greatest interest-rate risk?
A)A one-year bond
B)A five-year bond
C)A ten-year bond
D)A thirty-year bond

Name: Which of the following bonds has the greatest interest-rate risk? A)A one-year bond B)A five-year bond C)A ten-year bond D)A thirty-year bond
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Question

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The longer the term of the bond, the greater its interest-rate risk. Therefore, a thirty-year bond would have the greatest interest-rate risk among the given options.

Which of the Following Bonds Has the Greatest Interest-Rate Risk