Which bond's price is MOST sensitive to changes in interest rates? A Bond B D SOA B OC OD Issuer Government of Canada Government of Canada Rating Royal Bank Risk Free Risk Free B.C. Provincial Government AAA AAA Coupon 7% 6% 7.5% 8% Yield 7.42% 7.90% 7.77% 7.87% Maturity 10 years 30 years 10 years 5 years

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter7: Types And Costs Of Financial Capital
Section: Chapter Questions
Problem 2EP
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Which bond's price is MOST sensitive to changes in interest rates?
A
B
Bond
C
D
O A
OB
SOC
SOD
Issuer
Government of Canada
Government of Canada
B.C. Provincial Government
Royal Bank
Rating
Risk Free
Risk Free
AAA
AAA
Coupon
7%
6%
7.5%
8%
Yield
7.42%
7.90%
7.77%
7.87%
Maturity
10 years
30 years
10 years
5 years
Transcribed Image Text:Which bond's price is MOST sensitive to changes in interest rates? A B Bond C D O A OB SOC SOD Issuer Government of Canada Government of Canada B.C. Provincial Government Royal Bank Rating Risk Free Risk Free AAA AAA Coupon 7% 6% 7.5% 8% Yield 7.42% 7.90% 7.77% 7.87% Maturity 10 years 30 years 10 years 5 years
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