An investor is considering 3 purchasing different Bonds.

Bond X pays a coupon rate of 2% and matures in 12 years.

Bond Y pays a coupon rate of 4% and matures in 12 years.

Bond Z pays a coupon rate of 4% and matures in 7 years.

For a 300 basis point increase in the required rate of return:

Bond X will most likely exhibit a smaller percent decrease price than Bond Y.

Bond X will most likely exhibit a larger percent increase in price than Bond Y.

Bond X will most likely exhibit a smaller percent increase in price than Bond Y

Bond X will most likely exhibit a larger percent decrease in price than Bond Y.

None of the other answers are correct.