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QUESTION 6 At market interest rate level of 2%, a ten-year and a 30-year bond (both with 8% coupon rates and semiannual payment) are selling

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QUESTION 6 At market interest rate level of 2%, a ten-year and a 30-year bond (both with 8% coupon rates and semiannual payment) are selling at the prices $1,541.37 and $2,348,65, respectively. If you expected that interest rate will jump to 10% from the current level, which bond is risker and which bond is more profitable if interest rate drop significantly? O A Ten-year bond: Ten-year bond O B. Ten-year bond: 30-year bond 30-year bond: 30-year bond OC OD.30-year bond; Ten-year bond

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