A set of bonds all have the same maturity.Which one has the least percentage price changes for given shifts in interest rates:
A)zero coupon bonds.
B)high coupon bonds.
C)low coupon bonds.
D)pure discount bonds.
E)not enough information to determine.

Question

Quizplus · Accepted Answer

High coupon bonds have the least percentage price change for given shifts in interest rates because the higher coupon payments provide more income earlier, reducing the bond's duration and making it less sensitive to interest rate changes.

A Set of Bonds All Have the Same Maturity