Question: Everything else the same, if the yield to maturity decreased 1 percentage point, which of the following bonds would have the smallest percentage increase in
Everything else the same, if the yield to maturity decreased 1 percentage point, which of the following bonds would have the smallest percentage increase in value?
a.
A 3-year bond with 11% coupon.
b.
A 25-year 11% coupon bond.
c.
A 25-year 7.5% coupon bond.
d.
A 3-year zero coupon bond.
e.
A 25-year zero-coupon bond.
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