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A change in interest rates for two 10-year bonds with coupon rates of 6% and 10% respectively will A. cause a similar level of changes
A change in interest rates for two 10-year bonds with coupon rates of 6% and 10% respectively will
A. | cause a similar level of changes for both bonds. | |
B. | cause a bigger change in the price for the bond with a lower coupon rate than the bond with a bigger coupon rate. | |
C. | cause a smaller change in the price of the bond with a lower coupon rate than the bond with a bigger coupon rate. | |
D. | not impact on the prices of both bonds. |
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