Which of the following bonds will be most sensitive to changes in market interest rates?
A) 8 percent semiannual coupon with 8 years to maturity.
B) 6 percent semiannual coupon with 8 years to maturity.
C) 8 percent semiannual coupon with 6 years to maturity.
D) 6 percent semiannual coupon with 6 years to maturity.
Correct Answer:
Verified
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