Question: Which bond is more sensitive to interest rate changes? A bond with 1000 par, 3% coupon bond, 10 years to maturity. Or a bond with

Which bond is more sensitive to interest rate changes? A bond with 1000 par, 3% coupon bond, 10 years to maturity.

Or a bond with 1000 par, 5% coupon bond, 10 years to maturity?

A. Bond with 1000 par, 3% coupon bond, 10 years to maturity

B. Both are just as sensitive

C. Bond with 1000 par, 5% coupon bond, 10 years to maturity

D. Not enough information to answer this question

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