单选题 Which of the following five year bonds has the highest interest rate sensitivity?

A、

A. floating rate bond.
B、

B. callable 5% coupon bond.
C、

C. zero-coupon bond.

【正确答案】 C

【答案解析】The duration of a zero-coupon bond is equal to its time to maturity. Its price is greatly affected by changes in interest rates because its only cash-flow is at maturity and is discounted from the time at maturity until the present.