The committee chair states that interest rates change over time, which causes interest rate risk. She asks you to identify the bond that has the most price risk. (Hint: For each bond, compare the values at interest rates of 6, 8, 10, 12, and 14 percent.) 6. The chair then asks you to identify the bond that has the greatest reinvestment rate risk for an investor who has an investment horizon (or expected holding period) of 25 years. Is there a type of bond the investor could buy to eliminate reinvestment rate risk? (Hint: No additional calculations are required.) Price risk: Face Bond values at different interest rates Amount 6% 8% 10% 12% 14% $48,000,000 $32,000,000 $100,000,000 $64,000,000 Face Percentage change from bond value at 10% interest rate Amount 6% 8% 10% 12% 14% $48,000,000 $32,000,000 $100,000,000 $64,000,000 maturity----25 years