Question: ABC company has two bonds outstanding that are the same except for the maturity date. Bond D matures in 4 years, while Bond E matures

ABC company has two bonds outstanding that are the same except for the maturity date. Bond D matures in 4 years, while Bond E matures in 7 years. If the required return changes by 5 percent, then ________.

A. bond D will have a greater change in price

B. bond E will have a greater change in price

C. the price of the bonds will be constant

D. the percentage price change for the bonds will be equal

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