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Rank the following bonds from most to least sensitive to changes in interest rates. To receive full credit, you must provide an explanation for the
Rank the following bonds from most to least sensitive to changes in interest rates. To receive full credit, you must provide an explanation for the rankings based on the bond price sensitivity rules we learned in chapter 11.
Bond | Yield to Maturity | Maturity | Coupon |
A | 10 | 20 | 8 |
B | 10 | 20 | 0 |
C | 9 | 20 | 8 |
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