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Question #11 to #13 uses the following setup: Consider two bonds (face value of $100 ), each of which pays semiannual coupons and has five

Question #11 to #13 uses the following setup: Consider two bonds (face value of $100 ), each of which pays semiannual coupons and has five years left until maturity. One has a coupon rate of 5% and the other has a coupon rate of 10%. Both bonds have a yield to maturity (YTM) of 8%. By what percentage will the price of the first bond (i.e. the one with a 5% coupon rate) increase if its YTM decreases from 8% to 7% ? The growth rate in the bond's price is defined as PoldPnewPold A. 4.0% B.4.1\% C.4.2\% D. 4.3% E.4.4\%

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