1.Suppose a recently published report indicates inflation in both Canada and the U.S. is becoming excessive and the Canadian dollar is weakening. You hear a news report that the bond prices are falling. Which of the following Canadian bonds would experience the lowest % price decrease? Why?(4 marks)

i.Low coupon, short-term

ii.High coupon, long-term

iii.High coupon, short-term

iv.Low coupon, long-term