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Which of the following bonds has a higher interest rate sensitivity? Bond A is an 8% coupon, 20-year maturity bond selling at par value. Bond

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Which of the following bonds has a higher interest rate sensitivity? Bond A is an 8% coupon, 20-year maturity bond selling at par value. Bond B is an 8% coupon, 20-year maturity bond selling below par value. Bond C is an 8% coupon, 10-year maturity bond selling at par value. You predict that interest rates are about to fall. Which bond will show the biggest price increase? High coupon, short maturity Low coupon, short maturity High coupon, long maturity Low coupon, long maturity

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