Question: The table below presents four different bonds. Identify the bond with the highest sensitivity to interest rate changes. Bond Time to maturity Coupon rate Yield

The table below presents four different bonds. Identify the bond with

The table below presents four different bonds. Identify the bond with the highest sensitivity to interest rate changes. Bond Time to maturity Coupon rate Yield to maturity (years) Bond A 9-years 12% 6% Bond B 12-years 16% 7% Bond C 8-years 10% 3% Bond D 10-years 7% 5% A. Bond D B. Bond B a C. Bond C O D. Bond A

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