1. Which of the following bonds has the highest price risk due to changes in interest rates?

A. 12-year, 7 percent coupon bond

B. 12-year, 5 percent coupon bond

2. A bond with face value of $300,000 has a bid quote of 99.1027 and an asked quote of 99.3956. How much will you, an investor, pay to purchase 10 of these bonds?

C. 8-year, 7 percent coupon bond

D. 8-year, 5 percent coupon bond