Question: 4 . Bonds A , B , and C all have a maturity of 1 0 years and a gets to maturay a 7 %

4. Bonds A, B, and C all have a maturity of 10 years and a gets to maturay a 7%, Band It ale Enceeds its par value, Bond E's price equal is par value, and Bond C's pria is less than is par value Mons of the bonds can be called. Which of the following statements is COMMECT?a. I the vield to maturity on each bond increases to 8%, the prices of all thres bonds wit decline,b. Bond A has the most price risk6. If the yield to maturity on the three bonds remains constant, the prices of the three tondswill remain the same over the next year,d. If the yield to maturity on each bond decreases to 07%, Bond A will have the largest percentage increase in its price.e, Bond sells at a premium over its par value,

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