Assume that all interest rates in the economy decline from


Assume that all interest rates in the economy decline from 10% to 9%. Which of the following bonds would have the largest percentage increase in price?

a. An 8-year bond with a 9% coupon.     

b. A 10-year bond with a 10% coupon.   

c. A 1-year bond with a 15% coupon.      

d. A 10-year zero coupon bond.               

e. A 3-year bond with a 10% coupon

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Financial Management: Assume that all interest rates in the economy decline from
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