Question
Assume that interest rates in the economy increase from 7% to 9%. Which of the following bonds would have the largest percentage decrease in price?
Assume that interest rates in the economy increase from 7% to 9%. Which of the following bonds would have the largest percentage decrease in price?
| A 10-year bond with a 10% coupon. | ||
| A 3-year bond with a 10% coupon. | ||
| An 8-year bond with a 9% coupon. | ||
| A 1-year bond with a 15% coupon. | ||
| A 10-year zero coupon bond. |
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Cases In Healthcare Finance
Authors: Louis Gapenski
5th Edition
1567936113, 978-1567936117
