Question: By showing your calculations, justify which bond will be more sensitive to interest rate changes: Par value Term to maturity Annual coupon rate Frequency

By showing your calculations, justify which bond will be more sensitive to interest rate changes: Par value Term to maturity Annual coupon rate Frequency of coupon payment per year Yield of bonds in similar risk class Bond A ,1,000 5 years 4% Twice 4% Bond B 1,000 5 years 5% Once 8%

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