) A. . - - 2 = 2 SEE cDe 1 Normal 1 No Spac.. Heading 1 Heading 2 Heading 3 Heading 4 Paragraph Styles QUESTION 1 Your boss decides that interest rates are going to change tomorrow, and change BIG. That is to say.. interest rate risk is now your primary concern. In a rush, he tosses you the details of 4 different bond issues: Bond 1: 5-year coupon bond that has an amortization feature where the buyer receives 20% of the principal amount each year in addition to semi-annual coupon payments of 5% Bond 2: Non-amortizing, zero-coupon bond with a 20-year maturity Bond 3: Non-amortizing. 5 year coupon bond with 5% coupons Bond 4: Zero-coupon bond with a 5-year, 20% amortization Rank these bonds according to how much interest rate risk they have, from most to least