Consider bonds A, B, C, and D, each with a par value of $1,000. Which of the following bond's price is most sensitive to market rate changes?
A) Bond A: 4 year, 7 percent coupon rate, yield 4.2 percent
B) Bond B: 5 year, 6.5 percent coupon rate, yield 4.3 percent
C) Bond C: 8 year, 6.5 percent coupon rate, yield 4.2 percent
D) Bond D: 15 year, 5 percent coupon rate, yield 4.2 percent
Correct Answer:
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Q17: The bond quote of a 15-year, 7
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Q23: The value of a 12-year zero-coupon bond
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