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Consider the following bonds: Bond A B Coupon Rate (annual payments) 0.0% 0.0% 4.4% 7.8% Maturity (years) 10 15 15 10 C D Which of
Consider the following bonds: Bond A B Coupon Rate (annual payments) 0.0% 0.0% 4.4% 7.8% Maturity (years) 10 15 15 10 C D 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? Bond is most sensitive. (Select from the drop-down menu.) Bond is the least sensitive. (Select from drop-down menu.)
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