Consider the following bonds:

$\backslash$table$[[$Bond$,$Coupon Rate $($annual payments$),$Maturity $($years$)],[$A$,0\%,13],[$B$,0\%,10],[$C$,2\%,13],[$D$,8\%,10]]$

a$.$ What is the percentage change in the price of each bond if its yield to maturity falls from $4\%$ to $3\%?$

b$.$ Which of the bonds A$-$D is most sensitive to a $1\%$ drop in interest rates from $4\%$ to $3\%$ and why? Which bond is least sensitive$?$ Provide an intuitive explanation for your answer.

Note: Assume annual compounding.

a$.$ What is the percentage change in the price of each bond if its yield to maturity falls from $4\%$ to $3\%?$

The percentage change in bond $A$ is $\%.($Round to two decimal places.$)$

The percentage change in bond $B$ is $\%.($Round to two decimal places.$)$