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You are considering two bonds: Bond A 6% Coupon Rate 20 years to maturity Bond B 8% Coupon Rate 5 years to maturity Holding everything

You are considering two bonds:

Bond A 6% Coupon Rate 20 years to maturity
Bond B 8% Coupon Rate 5 years to maturity

Holding everything else constant, which of the following statements is true?

Group of answer choices

a. Bond A will be more sensitive (volatile) to interest rate changes.

b. Bond B will be more sensitive (volatile) to interest rate changes.

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