0% Consider the following bonds: Bond Coupon Rate (annual payments) Maturity years) A 0% 15 B 11 6% 15 D 11 What is the percentage change in the price of each bond its yield to maturty falls from 4% to 3%? b. Which of the bonds A-D is most sensitive to a 1% drop in interest rates from 4% to 3% and why? Which bond in least onsitive? Provide an intuitive explanation for your ans Note: Assume annual compounding a. What is the percentage change in the price of each bond if its yield to maturty bolls from 4% to 3%? The percentage change in bond As % (Round to two decimal placet.) The percentage change in bond B is % (Round to two decimal places) The percentage change in bond Cl% (Round to two decimal places) The percentage change in bond D I. (Round to two decimal places) b. Which of the bonds A through is most sorsitive to a 1% drop in interest rates, from 4% to 3%, and why? (Select the best choice below) OA Bond A because it has the lowest coupon and longest maturity. O B. Bond B, because it has the lowest coupon and shortest maturity O c. Bond C, because it has the shortest maturity and is the coupon bond with the lowest coupon OD. Bond D. because it has the highest coupon and shortest maturity Which of the bonds A through Dis least sensitive to a 1% drop in interest rates from 4% to 3%, and why? (Select the best choice below.)