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Use the table for the question(s)below.
Consider the following four bonds that pay annual coupons:
-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 to most sensitive.
Yearly Observations
Refers to data points or measurements that are collected once every year.
Trend
A general direction in which something is developing or changing, observed in data over time.
Annual Time-series
A sequence of data points representing the value of a variable over a series of years.
Sequential Order
The arrangement of objects, events, or values in a specific sequence where the order is significant.
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