1. 1. Suppose a recently published report indicates inflation in both Canada and the U.S. is becoming excessive and the Canadian dollar is weakening. You hear a news report that the bond prices are falling. Which of the following Canadian bonds would experience the lowest % price decrease? Why?

* i. Low coupon, short-term

* ii. High coupon, long-term

* iii. High coupon, short-term

* iv. Low coupon, long-term