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Assume that all interest rates in the economy decline from 10 percent to 9 percent. Which of the following bonds will have the smallest percentage
Assume that all interest rates in the economy decline from 10 percent to 9 percent. Which of the following bonds will have the smallest percentage increase in price? Select one:
a. A 13-year zero coupon bond.
b. An 18-year bond with a 9% coupon.
c. A 10-year bond with a 10% coupon.
d. A 15-year zero coupon bond.
e. A 10-year bond with a 20% coupon.
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