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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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