Multiple Choice
Which of the following bonds would have the greatest percentage increase in value if all interest rates in the economy fall by 1%?
A) 10-year,zero coupon bond.
B) 20-year,10% coupon bond.
C) 20-year,5% coupon bond.
D) 1-year,10% coupon bond.
E) 20-year,zero coupon bond.
Correct Answer:
Verified
Correct Answer:
Verified
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