Suppose the term structure of interest rate is flat. Consider the following four bonds: Bond Term to Maturity (year) Coupon rate YTM 1 7% 2 3 LO 5 7 7 10% O a. 1,2,3,4 O b. 2,3,4,1 O c. 4,3,2,1 O d. 2,1,4,3 10% 3% 7% 4 7 If the yield-to-maturity for all bonds changes by 1%, rank the bonds from the lowest percentage change in price to the largest percentage change in price based on duration approximation. 3% 7% 5% A

Suppose the term structure of interest rate is flat. Consider the following four bonds: If the yield-to-maturity for all bonds changes by \1, rank the bonds from the lowest percentage change in price to the largest percentage change in price based on duration approximation. a. \\( 1,2,3,4 \\) b. \\( 2,3,4,1 \\) c. \\( 4,3,2,1 \\) d. \\( 2,1,4,3 \\)