18.Rank the following bonds, from highest to lowest interestrate risk: 2-year zero coupon, 2-year 5% coupon bond, 30-year 5%coupon bond, 30-year, zero coupon bond.

A.30-year zero coupon bond, 30-year 5% coupon bond, 2-year 5%coupon bond, 2-year zero coupon bond

B.30-year zero coupon bond, 30-year 5% coupon bond, 2-year zerocoupon bond, 2-year 5% coupon bond

C.30-year 5% coupon bond, 30-year zero coupon bond, 2-year 5%coupon bond, 2-year zero coupon bond

D.2-year 5% coupon bond, 2-year zero coupon bond, 30-year 5%coupon bond, 30-year zero coupon bond

E.2-year zero coupon bond, 2-year 5% coupon bond, 30-year 5%coupon bond, 30-year zero coupon bond

19.A corporate bond with a 5.75 percent coupon has 15 years leftto maturity. It has had a credit rating of BB and a yield tomaturity of 6.25 percent. The firm has recently gotten morefinancially stable and the rating agency is upgrading the bonds toBBB. Thenew appropriate discount rate will be 6.00 percent. Whatwill be the change in the bond's price in dollars? (Assume interestpayments are paid semi-annually and a par value of $1,000.)

A.increase $28.75

B.decrease $22.25

C.increase $22.25

D.decrease $23.72

E.increase $23.72

20.A 6.00percent coupon bond with 12 years left to maturity ispriced to offer a 6.50percent yield to maturity. You believe thatin one year, the yield to maturity will be 6.25 percent. What isthe change in price the bondwill experience in dollars? (Assumesemi-annual interest payments and $1,000 parvalue.)A.$12.50B.$19.67C.$20.22D.$21.55E.$25.00