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You are comparing Two bonds: Bond A: 10-year maturity Treasury with a fixed 6.4% coupon Bond B: 10-year maturity Treasury with a fixed 2.1% coupon
You are comparing Two bonds: Bond A: 10-year maturity Treasury with a fixed 6.4% coupon Bond B: 10-year maturity Treasury with a fixed 2.1% coupon
Which of these two bonds carries MORE interest rate risk (all else equal)?
A) Bond A
B) Bond B
C) Neither: They are the same since the Maturities are both 10-years
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