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Analysts anticipate that the Central Bank of Germany will cut the interest rates to stimulate the economy. There are three bonds currently available in the
Analysts anticipate that the Central Bank of Germany will cut the interest rates to stimulate the economy. There are three bonds currently available in the market. What will happen to these bonds?
PB Bonds | Shell Bonds | HBC Bonds | |
Coupon Rate | 8% | 8% | 5% |
Time to Maturity in (years) | 20 | 30 | 30 |
Prices of all bonds will (Drop or Rise) (PB Bonds, Shell Bonds, HBC Bonds) will change the most while (PB Bonds, Shell Bonds, HBC Bonds) will change the least
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