Which of the following statements is correct? O A zero coupon bond is a bond that pays no interest and is offered (and subsequently sells initially) at par. These bonds provide compensation to investors in the form of capital appreciation. You hold two bonds. One is a 10-year, zero coupon, issue and the other is a 10-year bond that pays a 6% annual coupon. The same market rate, 6%, appiies to both bonds. >f the market rate rises from the current level, the zero coupon bond will experience the larger percentage decline. r r The time to maturity does not affect the change in the value of a bond in response to a given change in interest rates. re if sh: vie Because short-term interest rates are much more volatile than long-term rates, you would, in the real world, generally be subject to much more interestate pau rese bought 30-year bond. So if that Which of the following statements is correct? O A zero coupon bond is a bond that pays no interest and is offered (and subsequently sells initially) at par. These bonds provide compensation to investors in the form of capital appreciation. You hold two bonds. One is a 10-year, zero coupon, issue and the other is a 10-year bond that pays a 6% annual coupon. The same market rate, 6%, appiies to both bonds. >f the market rate rises from the current level, the zero coupon bond will experience the larger percentage decline. r r The time to maturity does not affect the change in the value of a bond in response to a given change in interest rates. re if sh: vie Because short-term interest rates are much more volatile than long-term rates, you would, in the real world, generally be subject to much more interestate pau rese bought 30-year bond. So if that