Consider the following bonds:

Bond	Coupon Rate (annual payments)	Maturity (years)
A	0.0%	10
B	0.0%	15
C	4.4%	15
D	7.6%	10

Which of the bonds A to D is most sensitive to a

1%

drop in interest rates from

6.8%

to

5.8%?

Which bond is least sensitive?

Bond

B

A

C

D

is most sensitive.(Select from the drop-down menu.)Bond

A

B

C

D

is the least sensitive.(Select from the drop-down menu.)