a$.$ What is the percentage change in the price of each bond if its yield to maturity falls from $6\%$ to $5\%?$

b$.$ Which of the bonds A$-$D is most sensitive to a $1\%$ drop in interest rates from $6\%$ to $5\%?$ Which bond is the least

sensitive$?$

a$.$ What is the percentage change in the price of each bond if its yield to maturity falls from $6\%$ to $5\%?$

b$.$ Which of the bonds A$-$D is most sensitive to a $1\%$ drop in interest rates from $6\%$ to $5\%?$ Which bond is the least

sensitive$?$

Bond

is the most sensitive to changes in bond yields.

is the least sensitive to changes in bond yields.

Requirements