Question: Which bond will most likely experience the smallest percent change in price if the market discount rates for all three bonds increase by 100 basis

Which bond will most likely experience the smallest percent change in price if the market

discount rates for all three bonds increase by 100 basis points? I provide the quoted bond price, coupon rate, and time-to-maturity of each bond below. You do not need a calculation.

a. Bond D: 100.00, 9%, 6 years

b. Bond A: 101.89, 5%, 2 years

c. Bond C: 97.33, 5%, 3 years

d. Bond B: 100.00, 9%, 2 years

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