Question: Do not use excel to answer this question 13. Consider the following bonds: (a) What is the percentage change in the price of each bond

 Do not use excel to answer this question 13. Consider the
Do not use excel to answer this question
following bonds: (a) What is the percentage change in the price of

13. Consider the following bonds: (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% and why? Which bond is least sensitive? Provide an intuitive explanation for your

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