An investor is considering the following six annual coupon payment government bonds: Based on the relationships between

Question:

An investor is considering the following six annual coupon payment government bonds: Bond A B C D E F Coupon Rate 0% 5% 8% 0% 5% 8% Time-to- Maturity 2 years 2 years 2 years 4 years 4 years 4

Based on the relationships between bond prices and bond characteristics, which bond will go up in price the most on a percentage basis if all yields go down from 5.00% to 4.90%?

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