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Bond A Bond B Price $924.18 $950.26 10% 10% Market yield Coupon rate Maturity 8% 8% 5 years 4.282 years 3 years 2.777 years Duration

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Bond A Bond B Price $924.18 $950.26 10% 10% Market yield Coupon rate Maturity 8% 8% 5 years 4.282 years 3 years 2.777 years Duration Based on above information, which bond is more sensitive to changes in the interest rate? Explain your answer. I (4 marks) LES English (AUS) MacBook Air gos 000 FS F6 F7 F8 F VVO

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