Question: Lets consider two bonds. Bond A is a par-value bond with a 12 year to maturity and a 12% coupon rate. Bond B is a

Lets consider two bonds. Bond A is a par-value bond with a 12 year to maturity and a 12% coupon rate. Bond B is a zero-coupon bond with a 12 year to maturity and a 12% yield to maturity. Which bond is more price sensitive to changes in interest rates?

Group of answer choices

Bond A because of the higher yield to maturity

Bond A because of the longer time to maturity

Bond B because of the longer duration

Both have the same sensitivity because both have the same yield to maturity.

None of the options are correct.

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