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Consider the following bonds. Bond A B Coupon Rate (annual payments) 0.0% 0.0% 3.7% 8.2% Maturity (years) 15 10 15 C D 10 Which of

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Consider the following bonds. Bond A B Coupon Rate (annual payments) 0.0% 0.0% 3.7% 8.2% Maturity (years) 15 10 15 C D 10 Which of the bonds A to D is most sensitive to a 1% drop in interest rates from 6.2% to 5.2%? Which bond is least sensitive? Provide an intuitive explanation for your answer. Bond is most sensitive. (Select from the drop-down menu.) Bond is the least sensitive. elect from the drop-down menu.) Intuitively, coupon rates and a maturity typically lower a bond's interest rate sensitivity. longer shorter

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