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Consider the following bonds: a. What is the percentage chan b. Which of the bonds AD is Consider the following bonds: Bond c Coupon Rate

Consider the following bonds: a. What is the percentage chan b. Which of the bonds AD is

Consider the following bonds: Bond c Coupon Rate (annual payments) 3% 8% Maturity (years) 15 10 15 10 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% and why? Which bond is least sensitive? Provide an intuitive explanation for your answer:

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