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Assume that all interest rates in the economy decline from 5% to 3%. Which of the following bonds will have the SMALLEST PERCETANGE increase in
Assume that all interest rates in the economy decline from 5% to 3%. Which of the following bonds will have the SMALLEST PERCETANGE increase in price?
a. 10 year bond with 5% coupon, paid annually
b. 10 year bond with 10% coupon, paid annually
c. 10 year bond with 15% coupon, paid annually
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