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Recently, central banks throughout the world have been paying close attention to the rising inflation, and they are considering to increase the interest rates. If
Recently, central banks throughout the world have been paying close attention to the rising inflation, and they are considering to increase the interest rates. If the interest rates go up, which of the following bonds will be the best investment to have?
Group of answer choices
A 8% coupon bond with 4 years to maturity.
A 2% coupon bond with 2 years to maturity.
A 3% coupon bond with 6 years to maturity.
A 5% coupon bond with 7 years to maturity.
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