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Assume that all interest rates in the economy decline from 10% to 9%. Which of the following bonds would have thelargestpercentage increase in price? Group
Assume that all interest rates in the economy decline from 10% to 9%. Which of the following bonds would have thelargestpercentage increase in price?
Group of answer choices
A 3-year bond with a 10% coupon.
A 10-year bond with a 10% coupon.
A 1-year bond with a 15% coupon.
A 10-year zero coupon bond.
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