Which of the following bonds will be most sensitive to a cha

Which of the following bonds will be most sensitive to a change in interest rates? A) a ten-year bond with a $2000 face value whose yield to maturity is 5.8% and coupon rate is 5.8% APR paid semiannually B) a 15 - year bond with a $5000 face value whose yield to maturity is 7.4% and coupon rate is 6.2% APR paid annually C) a 20 - year bond with a $3000 face value whose yield to maturity is 6.0% and coupon rate is 5.4% APR paid semiannually D) a 30 - year bond with a $1000 face value whose yield to maturity is 5.5% and coupon rate is 6.4% APR annually

Solution

C) a 20 - year bond with a $3000 face value whose yield to maturity is 6.0% and coupon rate is 5.4% APR paid semiannually