Holding other factors constant, the interest-rate risk of a coupon bond is higher when the bond's

A) term to maturity is lower.
B) coupon rate is lower.
C) yield to maturity is higher.
D) term to maturity is lower and yield to maturity is higher.
E) None of the options are correct.

Coupon Bond

A bond that entitles the holder to a fixed interest payment, or coupon, periodically until the bond matures.

Interest-Rate Risk

The potential for investment losses due to changes in interest rates, affecting the value of interest-bearing assets like bonds.

Yield To Maturity

The total return expected on a bond if the bond is held until its maturity date.