Question: Which statement is correct? A . Z - spread ( zero - volatility spread ) of Bond A is 1 . 0 5 % and

Which statement is correct?
A. Z-spread (zero-volatility spread) of Bond A is 1.05% and the Z-spread of Bond B is 1.53%. All else equal, Bond B is risker and will sell at a lower price than Bond A.
B. If two bonds have the same coupon rate, the longer-term bond has a smaller percentage price change than the shorter-term bond when the market discount rate decreases 1%.
C. A lower-coupon bond has a greater percentage price change than a higher-coupon bond when the market discount rate increases 1%.
 Which statement is correct? A. Z-spread (zero-volatility spread) of Bond A

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