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Bond X and Bond Y have identical terms to maturity and same coupon rate. However, Bond X is very risky with a credit rating of

Bond X and Bond Y have identical terms to maturity and same coupon rate. However, Bond X is very risky with a credit rating of C, while Bond Y is much safer with a credit rating of AAA. Assuming no change in credit spreads, which bond will be MORE sensitive to changes in interest rates? [Hint: Riskier bonds will have higher yield and think about the curvature in the price-yield relationship curve] Group of answer choices A. Bond X B. Bond Y C. Both will have same sensitivity. D. Cannot be determined

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