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Which of the following two bonds is more price sensitive to changes in interest rates? A par - value bond, A , with 1 2
Which of the following two bonds is more price sensitive to changes in interest rates?
A parvalue bond, with years to maturity and a coupon rate.
A zerocoupon bond, B with years to maturity and a yield to maturity.
d Both have the same sensitivity because both have the same yield to maturity.
a Bond A because of the higher yield to maturity
b Bond A because of the longer time to maturity
c Bond because of the longer duration
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