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Assume that you are holding two bonds. A 10 year zero coupon bond, and 10 year coupon bond with 5.00% coupon. You are not planning

  1. Assume that you are holding two bonds. A 10 year zero coupon bond, and 10 year coupon bond with 5.00% coupon. You are not planning to hold the bonds till maturity. If you expect the interest rates to decrease sharply, which bond would you rather get rid-off (sell) right now? Explain

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