Which of the following investments will experience the largest change in its market value as a result of changes in the level of interest rates (we are talking about the absolute value of the change, up or down)? Suppose interest rates go up or down by 50 basis points ( 0.5%). Rank the investments from 1 to 4 where a 1 is the most affected (largest absolute change in value) while a 4 is the least affected (smallest absolute change in value).

A: $1 million invested in 3-month Treasury bills

B: $1 million invested in STRIPS (zero coupons) maturing in three years

C: $1 million invested in a Treasury note maturing in three years. The note pays a 5% annual coupon

D: $1 million invested in a Treasury note maturing in three years. The note pays a 10.0% annual coupon