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Table 2 Bond Coupon Rate Maturity (years) A 6% 10 B 6% 5 C 8% 5 All three bonds above are currently trading at par
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Table 2
Bond
Coupon Rate
Maturity (years)
A
6%
10
B
6%
5
C
8%
5
All three bonds above are currently trading at par value.
See Table 2 above. Relative to Bond B, for a 200 basis point decrease in the required rate of return, Bond C will most likely exhibit a(n):
A. equal percentage price change
B. greater percentage price change
C. smaller percentage price change
D. no price change
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