Question

Which of the following has more interest risk? Why?
A. Bond A with a 10% Coupon and a YTM of 10% which matures in 5 years.
B. Bond B with a 10% Coupon and a YTM of 10% which matures in 11 years.
C.) A share of Preferred Stock that pays $10 dividend in perpetuity with a required rate of 10%
***i know B is more risk than A but I'm stuck between B and C and I also need an explanation of why...thanks

Related Questions

The Carter Company's bond mature in 10 years have a par value of 1,000 and an annual coupon payment... (Default risk) You buy a very risky bond that promises a 9.5% coupon and return of the $1,000 princ... A three-year bond has 8.0% coupon rate and face value of $1000. If the yield to maturity on the bond...