You are considering buying either bond a or bond b both

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You are considering buying either Bond A or Bond B. Both bonds have a 10 year maturity and have a 6% yield to maturity. However Bond A is a zero coupon bond and Bond B pays a 5% semiannual coupon. You want to buy the bond with the lowest interest rate risk. Which bond would you buy? Support your answer with calulation.

Reference no: EM13616526

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