Question: A bond portfolio manager is considering two bonds. Bond A has 15 years to maturity and a 5% coupon rate. Bond B has 15 years

A bond portfolio manager is considering two bonds. Bond A has 15 years to maturity and a 5% coupon rate. Bond B has 15 years to maturity and has a 10% coupon rate. Otherwise, the two bonds are identical. Which one of the description is correct?

A. Bond A has more Interest rate risk and more investment risk than Bond B

B. Bond A has less Interest rate risk and more investment risk than Bond B

C. Bond A has less Interest rate risk and less investment risk than Bond B

D. They have the same interest rate reinvestment risk

E. Bond A has more Interest rate risk and less investment risk than Bond B

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