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Consider the following bonds: Bond Coupon Rate (annual payments) Maturity (years) A 0.0% 15 B 0.0% 10 C 3.9% 15 D 8.2% 10 Which of
Consider the following bonds:
Bond | Coupon Rate (annual payments) | Maturity (years) |
A | 0.0% | 15 |
B | 0.0% | 10 |
C | 3.9% | 15 |
D | 8.2% | 10 |
Which of the bonds A to D is most sensitive to a
1%
drop in interest rates from
6.5%
to
5.5%?
Which bond is least sensitive?
Question content area bottom
Part 1
Bond
A
B
C
D
is most sensitive.(Select from the drop-down menu.)
Part 2
Bond
A
B
C
D
is the least sensitive.(Select from the drop-down menu.)
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