.When interest rate goes up, bond price dasssss All else being equal, bonds with smaller coupons are coupons than bonds with larger cheap-a- . Interest rate risk- effect of maturity Bond Interest Rate Risk Coupon rate (annual coupon) Face value Current required rate of return Uber 9.7% Lyft 9.7% 1,000.00 1,000.00 10% 10% Time to Maturity (year) Bond Price 10 0.50% 0.50% rate rises Bond Price (new) Percentage change in bond price rate drops 0.50% 0.50% Bond Price Percentage change in bond price All else being equal, bonds with longer maturity are maturity. than bonds with shorter