Which of the following investments is most affected by changes in the level of interest rates? Suppose interest rates go up or down by 50 basis points(+/- 0.5%). Rank the investments from most affected (largest change in value) to least affected (smallest change in value).

(a) $1 million invested in short-term Treasury bills.

(b) $1 million invested in STRIPS (zero coupons) maturing in December 2025.

(c) $1 million invested in a Treasury note maturing in December 2025. The note pays a 5.5% coupon.

(d) $1 million invested in a Treasury bond maturing in December 2025. The bond pays a 9.25% coupon.