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  3. consider the following information on two bonds: b

Consider the following information on two bonds: Bond-A and Bond-B. Bond-A Bond-A Bond-B Bond-B Face...

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Finance

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Consider the following information on two bonds: Bond-A and Bond-B. Bond-A Bond-A Bond-B Bond-B Face Value $10,000 $1,000 YTM 4.0% 4.0% Annual comma Annual coupon $400 $40 Years to Maturity The coupons are paid annually. Which of the two Bonds, A or B, has the most interest rate risk? Why? OA. B has the most interest rate risk, because its price is higher. OB. B has the most interest rate risk, because its time to maturity is higher. OC. A has the most interest rate risk, because its price is lower. OD. A has the most interest rate risk, because its time to maturity is lower. OE. A and B have the same interest rate risk, because their YTMs cke the same

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