Which of the following bonds would have the greatest percentage increase in value if all interest rates in the economy fall by 1%? a. 10-year, 10% coupon bond. b. 15-year, 10% coupon bond. 5-year, 10% coupon bond. d. 20-year, 10% coupon bond. Suppose Ford issues bonds with 15-year maturity and an 11.6% coupon rate, compounded annually. Suppose the market interest rate is 9%. What is the coupon payment? a. Not enough information. b. $116 C. $90 d. $1000 A bond has a $1,000 par value, 12 years to maturity, and a 7% semiannual coupon and sells for $985. What is the YTM? The right formula is a. 1,000= 70/(1+1)1 + 70/(1+1)2 +...+985/(1+1)12 b.985= 35/(1+1)1 + 35/(1+1)2 +...+1035/(1+1)24 C.985= 70/(1+1)1 + 70/(1+1)2 +...+ 1070/(1+1)12 d. 1,000= 35/(1+1)1 + 35/(1+1)2 +...+ 1035/(1+1)24