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Question
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.
Answer
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