If interest rates fall from 8 percent to 7 percent, which of the following bonds will have the largest percentage increase in its value?
a. A 10 - year zero - coupon bond.
b. A 10 - year bond with a 10 percent semiannual coupon.
c. A 10 - year bond with a 10 percent annual coupon.
d. A 5 - year zero - coupon bond.
e. A 5 - year bond with a 12 percent annual coupon.