Question: A 1 0 - year Treasury bond has a 1 2 % annual coupon, the 1 5 - year T - bond has an annual

A 10-year Treasury bond has a 12% annual coupon, the 15-year T-bond has an annual 8% coupon, the yield curve is flat, and all treasury securities have a 10% yield to maturity. Which of the following statements would be accurate?
Question 11 options:
a)
If interest rates decline, the prices of both bonds will increase with the 15-year bond having a larger percentage increase in price.
b)
If the yield to maturity for both bonds remains steady at 10% over the next year, the price of the 10-year bond would increase, but the price of the 15-year bond would fall.
c)
The 10-year bond would sell at a discount, while the 15-year bond would sell at a premium.
d)
The prices of both bonds will increase if interest rates decline with the 10-year bond having a larger percentage increase in price.

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