You have 2 semi-annual bonds: Bond A and Bond B.
Both bonds have identical maturities, face values, and yield to maturities.
However, Bond A has a lower coupon rate than Bond B.
If interest rates suddenly change, while all other respective bond characteristics stay the same, which
bond will suffer the largest percentage change in its current price?
Bond A
Bond B
Both will be equally affected.
Neither will be affected.