Question: Interest rate risk ________ as the time to maturity increases and ________ as the coupon rate decreases. a. increases; decreases b. increases; increases c. increases;

Interest rate risk ________ as the time to maturity increases and ________ as the coupon rate decreases.

a.

increases; decreases

b.

increases; increases

c.

increases; is unaffected

d.

decreases; increases

e.

decreases; decreases

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