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A 1% Decline in Yield Will Have the Greatest Effect

Question 82

Multiple Choice

A 1% decline in yield will have the greatest effect on the price of the bond with a


A) 10-year maturity,selling at 80
B) 10-year maturity,selling at 100
C) 20-year maturity,selling at 80
D) 20-year maturity,selling at 100
E) all bonds will be affected equally

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