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The table below presents four different bonds. Identify the bond with the highest sensitivity to interest rate changes. Bond Time to maturity Coupon rate Yield

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The table below presents four different bonds. Identify the bond with the highest sensitivity to interest rate changes. Bond Time to maturity Coupon rate Yield to maturity (years) Bond A 9-years 12% 6% Bond B 12-years 16% 7% Bond C 8-years 10% 3% Bond D 10-years 7% 5% A. Bond D B. Bond B a C. Bond C O D. Bond A

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