Question: I need help on this hw question please Consider the following bonds: Bond Coupon Rate (annual payments} Maturity {years} A 0% 14 B 0% a

I need help on this hw question please

I need help on this hw question please ConsiderI need help on this hw question please ConsiderI need help on this hw question please Consider
Consider the following bonds: Bond Coupon Rate (annual payments} Maturity {years} A 0% 14 B 0% a C 4% 14 D 10% a a. What is the percentage change in the price of each bond if its yield to maturity falls from 5% to 4%? b. Which of the bonds A D is most sensitive to a 1% drop in interest rates from 5% to 4% and why\"? Which bond is least sensitive? Provide an intuitive explanation for your answer. Note: Assume annual mmpounding. a. What is the percentage change in the price of each bond if its yield to maturity falls from 5% to 4%? The percentage change in b-ondA is |:%. {Round to Mo decimal places.) The percentage change in bond Bis %. (Round in two decimal places.) The percentage change in bond C is :|%. (Round to two decimal places.) The percentage change in bond D is :|%. (Round to two decimal places.) b. Which of the bonds A through D is most sensitive to a 1% drop in interest rates, from 5% to 4%.. and why? {Select the best choice below.) 0 A. Bond A. because it has the lowest coupon end longest maturity. O B. Bond 3, belluse it has the lowest coupon and shortest maturity. O 0. Bond C, because it has the shortest maturity and is the coupon bond with the lowest coupon. O D. Bond D, because it has the highest coupon and shortest maturity. Which of the bonds A through D is least sensitive to a 1% drop in interest rates. from 5% to 4%, and why? {Select the best choice below.) Which of the bonds A through D is least sensitive to a 1% drop in interest rates. from 5% to 4%, and why? {Select the best choice below.) 0 A. Bond A. because it has the lowest coupon and longest maturity. O B. Bond 3, belluse it has the lowest coupon and shortest maturity. O 0. Bond C, because it has the shortest maturity and is the coupon bond with the lowest coupon. O D. Bond D, because it has the highest coupon and shortest maturity

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