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Assume that all interest rates in the economy decline from 1 0 percent to 9 percent. Which of the following bonds will have the largest
Assume that all interest rates in the economy decline from percent to percent.
Which of the following bonds will have the largest percentage increase in price?
A A year bond with a percent coupon rate.
B An year bond with a percent coupon rate.
C An year zero coupon bond.
D A year bond with a percent coupon rate.
E A year zero coupon bond.
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