All else the same, which of the following bond combinations would have the greatest difference in sensitivity to changes in interest rates?
A) A 2-year and a 7-year bond.
B) A 25-year and a 30-year bond.
C) A 10-year and a 15-year bond.
D) A 7-year and a 12-year bond.
E) A 13-year and an 18-year bond.
Correct Answer:
Verified
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