1. Indicate whether the following characteristics would Increase (1), decrease (d), or have no effect (NE) on the interest rate sensitivity of a bond when compared to otherwise Identical bonds. a. A longer time to maturlty. b. A higher coupon rate. c. A higher initial yield to maturlty. What is the Macauley's duration of a bond with 3 years to maturity? When comparing two otherwise identical bonds with the exception that one bond has a lower coupon rate than the other, the bond with the lower coupon rate will have a(n) 2. 3. duration than the other bond. a. shorter b. equal c. longer