Question: When comparing the interest rate sensitivity ( i . e . , the effect of a change in interest rates on the price of the

When comparing the interest rate sensitivity (i.e., the effect of a change in interest rates on the price of the bond) of two bonds: Bond A is a 7-year bond with a 5.00% coupon and bond B is a 7-year bond with an 8.00% coupon we expect that:
- The interest rate sensitivity is greater for the Bond A
- The interest rate sensitivity is greater for Bond B.
- Neither bond will be sensitive to interest rates because the coupon rate is fixed.
- The interest rate sensitivity is the same for both bonds given they have the same maturity.

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