Question: Consider 2 identical bonds except for one difference. Bond A has a coupon rate of 8% while bond B has a coupon rate of 9%.

Consider 2 identical bonds except for one difference. Bond A has a coupon rate of 8% while bond B has a coupon rate of 9%. Suppose the yield to maturity for these bonds increases by 100 basis points. The percentage change in price for bond A will be _________ the percentage change in price of bond B.

a. Greater than b. Less than c. The same amount as d. Not enough information to answer the question

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