Compute lowest level of interest rate risk

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An investor observes option-free, semiannual-coupon paying bonds issued by SUNRAL, RASSA and EXKOM. All bonds have identical credit ratings and maturity dates. The SUNRAL bond trades for R101; RASSA trades for R100, and the EXKOM bond trades for R99 per R100 of par value. Which bond is exposed to the lowest level of interest rate risk?

Reference no: EM132932856

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