The prices of longer-term bonds are more volatile than the prices of shorter-term bonds with the same coupon. The prices of bonds with smaller coupons are more volatile than bonds with larger coupons for the same term to maturity. However, you cannot compare the relative price changes on bonds with different coupons and maturities unless you consider their durations. Consider the following GH1000 par value bonds when the current interest rate is 8 percent:

Bond Coupon Term Duration

A 8% 8 6.2 years

B 0% 9 ?

C 14% 10 ?

Compute the duration for bonds B and C, and rank the three bonds on the basis of their price volatility.