Question: 6. Consider The Following Bonds, Which Can Be Assumed To Be Free Of Default Risk, All With A Face Value Of $100: Bond Coupon Rate (annual Time To Maturity (years) Payment) Bond A 0% 16 Bond B 0% 4 Bond C 7% 16 Bond D 7% 4 Which Bond’s Price Will Be Least Sensitive To A Change In Its Yield To Maturity, If Interest Rates Rise From 5% To 6%? Least A) Bond …
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6. Consider the following bonds, which can be assumed to be free of default risk, all with a face value of $100: Bond Coupon Rate (annual Time to Maturity (years) payment) Bond A 0% 16 Bond B 0% 4 Bond C 7% 16 Bond D 7% 4 Which bond’s price will be least sensitive to a change in its yield to maturity, if interest rates rise from 5% to 6%? Least A) Bond A B) Bond B C) Bond C D) Bond D الم (