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

Question 19

Multiple Choice

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


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

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