Question: There are two bonds: Bond A is a zero coupon, 10-year bond. Bond B is a 10% annual coupon, 2 year bond. Both have a

There are two bonds: Bond A is a zero coupon, 10-year bond. Bond B is a 10% annual coupon, 2 year bond. Both have a face value of $1000. If market rates (yields) rise, what will happen to the price of each bond? Which bonds price will change more (in percentage terms)?

	A.	Decrease, Bond A
	B.	Decrease, Bond B
	C.	Increase, Bond B
	D.	Increase, Bond A

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