Suppose that today you buy an annual coupon bond with coupon rate of 7 percent for $1,060. The bond has 25 years to maturity. Six years from now, the yield to maturity of the bond has increased to 6.94 percent. If you decide to sell the bond at that time (that is, six years from today), what price will your bond sell for?

	A.	$992.86
	B.	$1,033.64
	C.	$1,007.03
	D.	$1,044.22

Which of the following bonds has the most price risk?

A. 7-year bonds with a 5% coupon

B. 3-year bonds with a 5% coupon

C. 15-year zero coupon bonds

D. 15-year bonds with a 10% coupon

	A.	D
	B.	A
	C.	B
	D.	C