Question: Consider the following two bonds with the same yield-to-maturity (YTM) of 6%: Bond A is a 15-year, 25% coupon bond, and bond B is a

Consider the following two bonds with the same yield-to-maturity (YTM) of 6%: Bond A is a 15-year, 25% coupon bond, and bond B is a 5-year, 5% coupon bond.

1. Calculate the duration measure for both bonds as of now

2. Based on the durations calculated in (2), what would the prices of these bonds be if the YTM decreases to 5% in the next year

3. Which of the two bonds, based on your previous answers, is the most sensitive to a change in the interest rate

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