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Consider a zero-coupon bond with maturity of 13 years. Let 0 denote the current interest rate and recall that the performance profile captures how the

Consider a zero-coupon bond with maturity of 13 years. Let 0 denote the current interest rate and recall that the performance profile captures how the bond price changes when the interest rate changes. Specifially, the performance profile is defined by ()=(0+)(0), where is the interest rate change and () is the bond price when the interest rate is . Which one of the following is possible? Group of answer choices

A)(0.02)= 1.29 , (0.01)= 1.13 , (0.01)= 0.75 , (0.02)= 0.78

B)(0.02)= 1.29 , (0.01)= 1.13 , (0.01)= 0.88 , (0.02)= 0.78

C)(0.02)= 1.29 , (0.01)= 1.13 , (0.01)= 0.88 , (0.02)= 0.67

D)(0.02)= 1.29 , (0.01)= 1.13 , (0.01)= 0.85 , (0.02)= 0.78

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