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Which one of the following bonds is most sensitive to interest rate changes? A. A 5% bond with 7 years to maturity and yield to

Which one of the following bonds is most sensitive to interest rate changes?

A.

A 5% bond with 7 years to maturity and yield to maturity of 10%.

B.

A zero coupon bond with 1 years to maturity and yield to maturity of 10%.

C.

A 5% bond with 7 years to maturity and yield to maturity of 8%.

D.

A 10% bond with 7 years to maturity and yield to maturity of 10%.

E.

A 5% bond with 6 years to maturity and yield to maturity of 8%.

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