4. Bonds and Their Valuation: Assessing a Bond's Risk Assessing a Bond's Risk Select risk is the risk of a decline in a bond's value due to an increase in interest rates. This risk is higher on bonds that have long maturities than on bonds that will Select risk is the risk that a decline in interest rates will lead to a decline in income from a bond portfolio. This risk is obviously high on calable bonds. It is also high on short-term bonds because the shorter the bond's maturity, the fewer the years before the relatively high old-coupon bonds will be replaced with new low , which is the period of time an investor plans to hold a particular coupon issues. Which type of risk is more relevant to an investor depends on the investor's -Select- investment. -Select risk but low-Select risk, while higher coupon bonds have a higher level of -Selectrisk and a lower level of Longer maturity bonds have high 4) -Select- risk. To account for the effects related to both a bond's maturity and coupon, many analysts focus on a measure called Select , which is the weighted average of the time it takes to receive each of the bond's cash flows Conceptual Question: Which of the following bonds would have the largest duration? Select