question archive Assume that all interest rates in the economy decline from 10% to 9%
Assume that all interest rates in the economy decline from 10% to 9%
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Assume that all interest rates in the economy decline from 10% to 9%. Which of the following bonds would have the LARGEST percentage increase in price?
a. an 8-year bond with a 9% coupon
b. a 1-year bond with a 15% coupon
c. a 3-year bond with a 10% coupon
d. a 10-year zero coupon bond
Option 1
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Option 2
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