Question: The yield rises by 2%. Which bond will have a greater percentage change in price: a) A 16-year, zero coupon bond? b) A 2-year, 7%

The yield rises by 2%. Which bond will have a greater percentage change in price: a) A 16-year, zero coupon bond? b) A 2-year, 7% coupon bond? c) A 5-year, 4% coupon bond?

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