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Bond A is a coupon-paying bond with maturity of 12 years. Bond B is a zero-coupon bond with the same maturity as Bond A. Bond

Bond A is a coupon-paying bond with maturity of 12 years. Bond B is a zero-coupon bond with the same maturity as Bond A. Bond C is a 2-year bond with a coupon rate of 4%. Which of the bonds is most sensitive to interest rate risk?

Question options:

1)	Bond A (THIS OPTION IS WRONG)

Bond B

Bond C

4)	Not enough information to determine

(OPTION 1 IS WRONG)

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