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If the yield to maturity decreased 1%, which of the following bonds would have the largest percentage increase in value? A 10-year zero coupon bond.
If the yield to maturity decreased 1%, which of the following bonds would have the largest percentage increase in value?
A 10-year zero coupon bond. | ||
A 1-year zero coupon bond. | ||
A 1-year bond with an 8% coupon. | ||
A 10-year bond with an 8% coupon. | ||
A 10-year bond with a 12% coupon. |
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