Consider the following bonds: Bond Coupon Rate (annual payments) Maturity (years) A B C D Which of the bonds A to D is most sensitive to a drop in interest rates from to ? Which bond is least sensitive?

Consider the following bonds: Bond Maturity (years) 15 B Coupon Rate (annual payments) 0.0% 0.0% 3.9% 7.8% 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? ..... Bond is most sensitive. (Select from the drop-down menu.) Bond is the least sensitive. (Select from the drop-down menu.)