Consider a portfolio manager who owns the following bond portfolio (all bonds pay interest semiannually). Which bond is most likely to bear the greatest interest rate risk?
Company Coupon Maturity YTM Bond Type
Hutto-Barkley Inc. 7% 15 years 4.8% Option-Free
Luna y Estrellas Intl. 7% 15 years 4.6% Callable at 102%
Peaton Scorpio Motors 9% 5 years 6.0% Option-Free
Archway Technologies 8% 5 years 5.7% Putable at 99%