Which of the following bonds has the shortest duration? A bond with a: A. 10-year maturity, 10% coupon rate. B. 20-year maturity, 6% coupon rate. C. 10-year maturity, 6% coupon rate.
All else constant, a bond with a longer maturity will be more sensitive to changes in interest rates. All else constant, a bond with a lower coupon will have greater interest rate risk.
