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begin{tabular}{ccc} Bond & Coupon Rane (armial payments) & Matuitily (years) hline A & 0% & 17 B & 0% & 11 C

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\begin{tabular}{ccc} Bond & Coupon Rane (armial payments) & Matuitily (years) \\ \hline A & 0% & 17 \\ B & 0% & 11 \\ C & 4% & 17 \\ D & 11% & 11 \end{tabular} 2. What is the percertage change in the price of each bond 1 a yeleld to maturity talls from 5% to 4$ ? Note. Assume arrual cempounsing \begin{tabular}{ccc} Bond & Coupon Rate (annual payments) & Maturity (years) \\ \hline A & 0% & 17 \\ B & 0% & 11 \\ C & 4% & 17 \\ D & 11% & 11 \\ \hline \end{tabular} a. What is the percentage change in the price of each bond if its yield to maturity falls from 5% to 4% ? b. Which of the bonds A through D is the most sensitive to a 1% drop in interest rates from 5% to 4% and why? Which bond is the least sensitive? Provide an intuitive explanation for your answer. Note: Assume annual compounding

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