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

Question 76

Multiple Choice

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


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

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