D. Assume that bonds ABC and XYZ are zero coupon bonds. The yield curve for this issuer is flat at 8%. One bond has a maturity of 8 years whilst one has a maturity of 10 years. Based on this information, which bond is the longer maturity bond and which is the shorter maturity bond. What is the best terminology to describe this pattern (use terminology covered in this unit)? Please explain your answers. [4 Marks] Estimated percentage change in price if interest rates change by: -50 basis points +50 basis points Bond ABC +10% -7% Bond XYZ +11% -8% + D. Assume that bonds ABC and XYZ are zero coupon bonds. The yield curve for this issuer is flat at 8%. One bond has a maturity of 8 years whilst one has a maturity of 10 years. Based on this information, which bond is the longer maturity bond and which is the shorter maturity bond. What is the best terminology to describe this pattern (use terminology covered in this unit)? Please explain your answers. [4 Marks] Estimated percentage change in price if interest rates change by: -50 basis points +50 basis points Bond ABC +10% -7% Bond XYZ +11% -8% +