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Consider the following bonds: Bond A Coupon Rate (annual payments) 0% 0% Maturity (years) 15 10 15 10 D 3% 12% a. What is the

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Consider the following bonds: Bond A Coupon Rate (annual payments) 0% 0% Maturity (years) 15 10 15 10 D 3% 12% a. What is the percentage change in the price of each bond if its yield to maturity falls from 8% to 7%? b. Which of the bonds A-Dis most sensitive to a 1% drop in interest rates from 8% to 7% and why? Which bond is least sensitivo? Provide an intuitive explanation for your answer Note: Assume annual compounding. a. What is the percentage change in the price of each bond If its yield to maturity falls from 8% to 7%? The percentage change in bond Als []%(Round to two decimal placet.)

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