A fixed income manager wants to take advantage of a forecast decline in interest rates over the next several months. Which of the following combinations of maturity and coupon rate would most likely result in the largest increase in portfolio value? A. B. C. Maturity 2025 2025 2040 Coupon rate 10% 12% 10% A newly issued ten-year option-free and annual payment bond is valued at par on June 1, 2120. The bond has an annual coupon of 8.0 percent. On June 1, 2123, the bond has a yield to maturity of 7.1 percent. The first coupon is reinvested at 8.0 percent and the second coupon is reinvested at 7.0 percent. The future price of the bond on June 1, 2123, is closest to: A. B. C. 102.5% of par. 104.8% of par. 105.4% of par. An analyst determines the following information about an annual coupon bond: Par value = $1,000 Modified duration = 10 Current price = $800 Yield to maturity (YTM) = 8% If the YTM increases to 9 percent, the predicted decrease in price, using the duration concept, is closest to: A. B. C. $80.00. $77.67. $75.56