The higher a bond's duration, the _______________. If your portfolio has a duration of 7 years and your target date is 7.3 years, you should _______________.

Select one:

lower its interest rate risk; sell higher-duration bonds and buy lower-duration bonds

lower its interest rate risk; sell lower-duration bonds and buy higher-duration bonds

higher its interest rate risk; sell higher-duration bonds and buy lower-duration bonds

higher its interest rate risk; sell lower-duration bonds and buy higher-duration bonds

lower its interest rate risk; sell higher-duration bonds and buy lower-duration bonds

lower its interest rate risk; sell lower-duration bonds and buy higher-duration bonds

higher its interest rate risk; sell higher-duration bonds and buy lower-duration bonds

higher its interest rate risk; sell lower-duration bonds and buy higher-duration bonds