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Which of the Following Two Bonds Is More Price Sensitive

question 57

Multiple Choice

Which of the following two bonds is more price sensitive to changes in interest rates?
1) A par value bond,A,with a 12-year-to-maturity and a 12% coupon rate.
2) A zero-coupon bond,B,with a 12-year-to-maturity and a 12% yield-to-maturity.


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