Which of the Following Bonds Will Be Most Sensitive to Changes

question 39

Multiple Choice

Which of the following bonds will be most sensitive to changes in market interest rates?

• A) A bond with an 8 percent semiannual coupon and 8 years to maturity
• B) A bond with a 6 percent semiannual coupon and 8 years to maturity
• C) A bond with an 8 percent semiannual coupon and 6 years to maturity
• D) A bond with a 6 percent semiannual coupon and 6 years to maturity

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