Question: If the interest rates in general decrease, causing the YTM of bonds to decrease, by 1 percentage point, the bond that would have the
If the interest rates in general decrease, causing the YTM of bonds to decrease, by 1 percentage point, the bond that would have the largest percentage point increase in its price would be: OA 10-year bond with a 10% coupon rate OA 1-year bond with a zero coupon rate O A 5-year bond with a 10% coupon rate OA 10-year bond with a zero coupon rate OA 1-year bond with a 10% coupon rate
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