6)

An investor has an expectation that the market interest rate would keep going down. Considering the bond pricing theorem, which one of the following bonds would the investor most likely purchase? (2 marks)

A. 5% coupon bond that matures in 3 years.

B. 10% coupon bond that matures in 3 years.

C. Zero coupon bond that matures in 5 years.

D. 10% coupon bond that matures in 5 year