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 higher.
C) yield to maturity is lower.
D) current yield is higher.
E) None of the options are correct.

Coupon Bond

A debt security that pays the holder a fixed interest amount (coupon) at scheduled intervals until the maturity date, when the principal amount is repaid.

Interest-Rate Risk

Interest-rate risk is the risk that changes in interest rates will negatively affect the value of an investment, particularly relevant for fixed-income securities.