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

question 80

Multiple Choice

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

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

---

Definitions:

Mental Health Promotion

A concept complementary to the concept of prevention in community psychology that focuses on the idea of enhancing the functioning of people.

Health Information

Data related to the health status of a person, including medical history, diagnoses, treatment plans, and outcomes.

Disease Prevention

Strategies or activities aimed at preventing the development or severity of diseases, rather than treating them after they have occurred.

Public Health

The practice of protecting and improving the health of people and their communities through education, policy-making, and research for disease and injury prevention.