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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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