Which of the following has the greatest sensitivity to the changes in interest rate (i.e....
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Finance
Which of the following has the greatest sensitivity to the changes in interest rate (i.e. greatest duration)? The yield curve is at at 10%. A) Zero coupon bond with 10 year maturity OB) Perpetuity with $100 annual payments C) Coupon bond with 10 year maturity, 10% coupon rate, face value of $1,000 OD) Annuity with 10 year maturity and $100 annual payment E) can not determine (need other information)
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