24. Which of the bonds AD is most sensitive to a 1% drop in interest rates from...

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24. Which of the bonds A–D is most sensitive to a 1% drop in interest rates from 6% to 5%

and why? Which bond is least sensitive? Provide an intuition explanation for your answer.

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Fundamentals Of Corporate Finance

ISBN: 9780134475561

4th Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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