Assuming all of the following mature at about the same time, which of the following bonds should experience the greatest price decline if interest rates rise by 1%?
A) Treasury bond issued at par and carrying a 4% coupon.
B) Treasury bond issued at par carrying a 5% coupon.
C) Treasury bond issued at par carrying a 7% coupon.
D) Treasury bond issued at par carrying a 6% coupon.
Answer: A