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Consider the following bonds: Bond Maturity (years) 15 A B D Coupon Rate (annual payments) 0.0% 0.0% 3.7% 7.7% 10 15 10 Which of the
Consider the following bonds: Bond Maturity (years) 15 A B D Coupon Rate (annual payments) 0.0% 0.0% 3.7% 7.7% 10 15 10 Which of the bonds A to D is most sensitive to a 1% drop in interest rates from 6.4% to 5.4%? Which bond is least sensitive? Bond is most sensitive. (Select from the drop-down menu.)
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