Question: Consider three bonds, A , B and C , each paying 7 % semiannual coupons, and with face value of US$ 1 , 0 0

Consider three bonds, A, B and C, each paying 7% semiannual coupons, and with face value of US$1,000. For each bond, use the Excel PRICE function to calculate the price when the YTM ranges from 1% to 20%. Observe the graph that is generated at the bottom of the worksheet. Which of the three bonds is most sensitive to changes in the YTM?

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