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This question has TWO parts. Please make sure that you scroll down to answer both parts. Consider the following bonds: Which of the bonds A
This question has TWO parts. Please make sure that you scroll down to answer both parts. Consider the following bonds: Which of the bonds A to D is most sensitive to a 1% drop in interest rates from 6.7% to 5.7% ? Bond is most sensitive. (Select from the drop-down menu.) The measurement of the sensitivity of a bond's price to changes in interest rates is known as: (choose the most appropriate answer) A. Yield to Maturity (YTM) B. Duration C. Credit Risk D. Repayment Risk
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