The largest percentage increase in price

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Reference no: EM13811502

Assume that all interest rates in the economy decline from 10% to 9%. Which of the following bonds would have the largest percentage increase in price?

a. An 8-year bond with a 9% coupon.

b. A 10-year bond with a 10% coupon.

c. A 1-year bond with a 15% coupon.

d. A 10-year zero coupon bond.

e. A 3-year bond with a 10% coupon

Reference no: EM13811502

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