Question: Question 7 (1 point) You are asked to consider 3 bonds: Bond A, maturing in 5 years with a coupon of 8%. Bond B, also

Question 7 (1 point) You are asked to consider 3 bonds: Bond A, maturing in 5 years with a coupon of 8%. Bond B, also with a coupon of 8% maturing in 25 years Bond C, maturing in 5 years with a coupon of 10% Interest rates rise by 3%. Assuming that all bonds are similar in credit quality and have no special features, how would the bonds rank from highest to lowest in order of percentage price change as a result of the change in interest rates? a) Bond B/Bond C/Bond A. b) Bond A/Bond B/Bond C. c) Bond C/Bond A/Bond B. d) Bond B/Bond A/Bond C

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