1. A three-year bond with a current yield of 10% per annum and a duration of 2.76 years, when compared with a four- year bond with a current yield of 12% per annum and duration of 3.43 years, will _______ when interest rates rise.

Select one: a. have a greater fall in price

b. have a smaller fall in price c. have a smaller rise in price d. have the greater interest rate exposure