Question: Problem - 9 Bond Sensitivity You are evaluating two bonds that you hold in your investment account. Each bond pays semiannual coupons, with a yearly

Problem - 9 Bond Sensitivity You are evaluating two bonds that you hold in your investment account. Each bond pays semiannual coupons, with a yearly coupon rate of 6%. Both have a $1,000 face value. The current market interest rate is 6% YTM Bond A has 12 years to maturity Bond Bhas 4 years to maturity. If the market rate of interest (YTM) rises unexpectedly to 7%, Bond will be the most volatile with a price decrease of Multiple Choice A: 5.73 B, 4.51 0,797

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