Bonds having the greatest interest rate risk


Problem:

Which one of the following bonds has the greatest interest rate risk?

a. 9-year; 7 percent coupon

b. 9-year; 9 percent coupon

c. 5-year; 7 percent coupon

d. 5-year; 9 percent coupon

e. 7-year; 7 percent coupon.

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Finance Basics: Bonds having the greatest interest rate risk
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