The longer the bonds term to maturity and the lower the coupon rate t, the longer the duration.

The longer the bonds term to maturity and the lower the coupon rate t, the longer the duration. The change in price for the higher coupon bond is less than that for the lower coupon bonds for both the increase and decrease in required return. C. Assume that you have money to invest in a bond but need the proceeds of the investment in 10 years. Which type of bonds could you purchase to eliminate interest rate risk?