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    Which Bond has the Greatest Interest Rate Risk?

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    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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    Solution Summary

    An answer is briefly selected from a list of durations and coupon percentages.