Question: Use the table for the question(s) below. Consider the following four bonds that pay annual coupons: Bond Years to maturity Coupon YTM A 1 0%
Use the table for the question(s) below. Consider the following four bonds that pay annual coupons:
| Bond | Years to maturity | Coupon | YTM |
| A | 1 | 0% | 5% |
| B | 5 | 6% | 7% |
| C | 10 | 10% | 9% |
| D | 20 | 0% | 8% |
Assume that the YTM increases by 1% for each of the four bonds listed. Rank the bonds based upon the sensitivity of their prices from least (#1) to most (#4) sensitive.
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