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If you are holding two bondsone with a 5 percent coupon rate and the other with an 8 percent coupon ratewhich one is more sensitive
If you are holding two bondsone with a 5 percent coupon rate and the other with an 8 percent coupon ratewhich one is more sensitive to interest rate risk, all other things being equal?
Multiple choice question.
Interest rate risk is not affected by coupon rates.
The bond with a 5 percent coupon rate.
Both bonds are equally sensitive.
The bond with an 8 percent coupon rate.
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