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Please solve the following: Consider the following bonds: Which of the bonds A to D is most sensitive to a 1% drop in interest rat

Please solve the following:

image text in transcribedimage text in transcribedimage text in transcribed Consider the following bonds: Which of the bonds A to D is most sensitive to a 1% drop in interest rat from 6.6% to 5.6% ? Which bond is least sensitive? Bond is most sensitive. (Select from the drop-down menu.) Suppose a seven-year, $1,000 bond with an 8.2% coupon rate and semiannual coupons is trading with a yield to maturity of 6.67%. a. Is this bond currently trading at a discount, at par, or at a premium? Explain. b. If the yield to maturity of the bond rises to 7.02% (APR with semiannual compounding), what price will the bond trade for? a. Is this bond currently trading at a discount, at par, or at a premium? Explain. (Select the best choice below.) A. Because the yield to maturity is greater than the coupon rate, the bond is trading at par. B. Because the yield to maturity is less than the coupon rate, the bond is trading at a premium. C. Because the yield to maturity is less than the coupon rate, the bond is trading at a discount. D. Because the yield to maturity is greater than the coupon rate, the bond is trading at a premium. Consider the following bonds: Which of the bonds A to D is most sensitive to a 1% drop in interest rates from 6.6% to 5.6% ? Which bond is least sensitive? Data table (Click on the following icon in order to copy its contents into a spreadsheet.)

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