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Which of the Following Bonds Will Have the Largest Percentage

Question 77

Multiple Choice

Which of the following bonds will have the largest percentage increase in value if interest rates decrease by 1 percent?


A) 2-year, 5 percent coupon bond
B) 30-year, 10 percent coupon bond
C) 10-year, zero-coupon
D) 30-year, zero-coupon

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