Its Yield to Maturity Declined by 1%, Which of the Following

question 19

Multiple Choice

its yield to maturity declined by 1%, which of the following bonds would have the largest percentage increase in value?

• A)A 1-year zero coupon bond.
• B)A 1-year bond with an 8% coupon.
• C)A 10-year bond with an 8% coupon.
• D)A 10-year bond with a 12% coupon.
• E)A 10-year zero coupon bond.

---

Definitions:

Ultradian

Describes biological rhythms with cycles shorter than 24 hours, such as the stages of sleep or patterns of hormone release.

Infradian

refers to biological rhythms with cycles that are longer than a day, such as menstrual or seasonal cycles.

Altered State

A condition of significant deviation from one's normal cognitive, emotional, or behavioral state, often induced by stress, meditation, drug use, or psychiatric disorders.

Consciousness

The state of being aware of and able to think about one's surroundings, actions, and thoughts.