What bond is more sensative to interest rate change

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Reference no: EM131957498

Lion Inc, has a 10 year bond outstanding, coupon rate of 10% paid semiannually, and is currently priced at par, which is $1000. Eagle Corp. has an identical bond except that it pays a 3% coupon.If market interest rates suddenly drop by 2%, by what percent does each bond's price change? What bond is more sensative to interest rate change?

Reference no: EM131957498

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