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2. If you expect interest rates to decline and want to make the most money: a) You prefer a bond with a call option over

2. If you expect interest rates to decline and want to make the most money:

a) You prefer a bond with a call option over an identical bond without a call option

b) You prefer short-term bonds over otherwise identical long-term bonds

c) You prefer a bond with a lower coupon rate over an otherwise identical bond with a higher coupon rate

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