Consider the following information about 5 bonds. Which bond's price is the least sensitive to changes in interest rates Bond Coupon rate Maturity 3% 10 years 4% 10 years 3% 5 years 4% 5 years 10 years E 2% O A O B OD O E

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Consider the following information about 5 bonds. Which bond's price is the least sensitive to changes in interest rates?
Bond
Coupon rate
Maturity
3%
10 years
B
4%
10 years
3%
5 years
D
4%
5 years
E
2%
10 years
O A
O C
OD
O E
Transcribed Image Text:Consider the following information about 5 bonds. Which bond's price is the least sensitive to changes in interest rates? Bond Coupon rate Maturity 3% 10 years B 4% 10 years 3% 5 years D 4% 5 years E 2% 10 years O A O C OD O E
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