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The following information relates to Questions 1 1 and 1 2 Bond Coupon Rate Maturity ( years ) A 6 % 1 0 B 6

The following information relates to Questions 11 and 12 Bond Coupon Rate Maturity (years) A 6%10 B 6%5 C 8%5 All three bonds are currently trading at par value. 11. Relative to Bond C, for a 200 bp decrease in the required rate of return, Bond B will most likely exhibit a(n): A. equal percentage price change. B. greater percentage price change. C. smaller percentage price change.

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