All else equal, a zero-coupon bond's price is more sensitive to changes interest rates than a bond with a 10% annual coupon.

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A zero-coupon bond has no coupon payments, so its entire value is based on the final payment at maturity. As a result, changes in interest rates will have a larger impact on the bond's price compared to a bond with a 10% annual coupon, which has some value based on the coupon payments.

All Else Equal, a Zero-Coupon Bond's Price Is More Sensitive