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Question 15 5 pts Which one of the following bonds is the most sensitive to changes in market interest rates? Zero coupon, ma
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The following bonds is the most sensitive to changes in market interest rates;-

Option A - Zero Coupon Bonds, Maturing in 10 years.

The bonds which carry low coupon rates and higher maturities are more sensitive to changes in market interest rates. As Zero Coupon Bond carry less coupon rates and have higher maturity of 10 years it is more violatile to changes in market.

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