Consider a portfolio manager who owns the following bond


Consider a portfolio manager who owns the following bond portfolio (all bonds pay interest semiannually). Which bond is most likely to bear the greatest interest rate risk?

Company                                  Coupon                 Maturity                     YTM                           Bond Type

Hutto-Barkley Inc.                      7%                          15 years                  4.8%                           Option-Free

Luna y Estrellas Intl.                  7%                          15 years                  4.6%                           Callable at 102%

Peaton Scorpio Motors               9%                           5 years                  6.0%                            Option-Free

Archway Technologies                8%                           5 years                  5.7%                            Putable at 99%

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Financial Management: Consider a portfolio manager who owns the following bond
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