Risk averse investors would take risks only if suitably compensated and therefore they would choose to minimize risk. Such a risk averse investor will prefer to invest money in which of the following bonds to minimize interest rate Price risk:
Group of answer choices
2-year maturity, 10 percent coupon bonds.
20-year maturity, 6 percent coupon bonds.
2-year maturity, 7 percent coupon bonds.
20-year maturity, zero coupon bonds.
5-year maturity, 7 percent coupon bonds.