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The price of which of the following bonds will be more sensitive to changes in interest rates. Explain your answer and show your calculation S.
The price of which of the following bonds will be more sensitive to changes in interest rates. Explain your answer and show your calculation S. I. 4-year 15% coupon bond with a face value of $100 that pays annual coupons and is trading at a yield of 10% II. 5-year 20% coupon bond with a face value of $100 that pays semi-annual coupons and is trading at a yield of 15%
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