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Consider the following bonds: Bond A B Coupon Rate (annual payments) 0.0% 0.0% 4.2% 7.8% Maturity (years) 10 15 15 10 D Which of the
Consider the following bonds: Bond A B Coupon Rate (annual payments) 0.0% 0.0% 4.2% 7.8% Maturity (years) 10 15 15 10 D Which of the bonds A to D is most sensitive to a 1% drop in interest rates from 6.9% to 5.9%? Which bond is least sensitive? Bond is most sensitive. (Select from the drop-down menu.) Bond is the least sensitive. (Select from the drop-down menu.) You have purchased a 8% coupon bond for $1,070. What will happen to the bond's price if market interest rates rise? If market interest rates rise, the bond's price will (Select from the drop-down menu.) increase stay the same decrease
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