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8 ) Which of the following two bonds is more price sensitive to changes in interest rates ? 1 ) A par value bond ,
8 ) Which of the following two bonds is more price sensitive to changes in interest rates ? 1 ) A par value bond , X , with a 5 - year - to - maturity and a 10 % coupon rate 2 ) A zero-coupon bond , Y , with a 5 - year - to - maturity and a 10 % yield - to - maturity A . Bond X because of the higher yield to maturity B . Bond X because of the longer time to maturity C . Bond Y because of the longer duration D. Both have the same sensitivity because both have the same yield to maturity E . None of these
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