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Consider the following bonds:

$\backslash$table$[[$Bond$,\backslash$table$[[$Coupon Rate$],[($annual payments$)]],\backslash$table$[[$Maturity$],[($years$)]]],[$A$,0\%,15],[$B$,0\%,10],[$C$,4\%,15],[$D$,8\%,10]]$

a$.$ What is the percentage change in the price of each bond if its yield to maturity falls from $6\%$ to $5\%?$

b$.$

Which of the bonds A$-$D is most sensitive to a $1\%$ drop in interest rates from $6\%$ to $5\%?$ Which bond is the least sensitive$?$

Par value

Old YTM

New YTM

$\backslash$table$[[$$$1,000$