27.

Assume that all interest rates in the economy decline from 10% to 9%. Which of the following bonds would have the largest percentage increase in price?

a. An 8-year bond with a 9% coupon.

b. A 10-year bond with a 10% coupon.

c. A 1-year bond with a 15% coupon.

d. A 10-year zero coupon bond.

e. A 3-year bond with a 10% coupon