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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

  1. 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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