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Consider the following bonds: (Click on the following icon in order to copy its contents into a spreadsheet.) a. What is the percentage change in

image text in transcribed Consider the following bonds: (Click on the following icon in order to copy its contents into a spreadsheet.) a. What is the percentage change in the price of each bond if its yield to maturity falls from 6% to 5% ? b. Which of the bonds A through D is the most sensitive to a 1% drop in interest rates from 6% to 5% and why? Which bond is the least sensitive? 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 6% to 5% ? The percentage change in bond A is %. (Round to two decimal places.)

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