9. Which one of the following bonds is the most sensitive to changes in market interest rates? (A) 5-year, zero coupon (B) 5-year, 5 percent coupon (C) 5-year, 8 percent coupon (D) 10-year, zero coupon

11. Weston Steel purchased a new coal furnace six years ago at a cost of $2.2 million. Last year, the government changed the emission requirements and this furnace cannot meet those standards. Thus, the company can no longer use the furnace, nor has it been able to locate anyone willing to purchase the furnace. Given the current situation, the furnace is best described as which type of cost? (A) Erosion (B) Book (C) Sunk (D) Opportunity

9. Which one of the following bonds is the most sensitive to changes in market interest rates?
(A) 5-year, zero coupon
(B) 5-year, 5 percent coupon
(C) 5-year, 8 percent coupon
(D) 10-year, zero coupon

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