Question: Consider the following two bonds: A and B, both 5% (annual) coupon bonds with Face Value $1,000. Bond A matures in 8 years and bond

Consider the following two bonds: A and B, both 5% (annual) coupon bonds with Face Value $1,000. Bond A matures in 8 years and bond B matures in 3 years. Investors have the same required return for either bond A or B. Answer the following multiple choice question: Given a sudden decline in bond investors' required returns... The percentage change in bond A's price exceeds the percentage change in bond B's price The percentage, change in bond B's price exceeds the percentage change in bond A's price The percentage change in bond A's price is the same as the percentage change in bond B's price None of the above

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