Question: Bond Price Sensitivity Two bonds, each with a face value of $1000 are issued at par with the same yield to maturity of 6% Bond

 Bond Price Sensitivity Two bonds, each with a face value of

Bond Price Sensitivity Two bonds, each with a face value of $1000 are issued at par with the same yield to maturity of 6% Bond Ais a 10 year, annual coupon bond, while Bond B is a 15 year annual coupon bond interest rates (yields) immediately drop by 1% after the bonds are issued, which of the following is the most correct statement O A. Bond Bis the best choice, as it will depreciate by 2.5% O B. Bond B is the best choice, as it will appreciate by 8.4% OC. Bond A is the best choice, as it will appreciate by 7.7% OD. Bond Bis the best choice, as it will appreciate by 10.4%

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