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If you expect the interest rates to decline soon but the bond market is remained unchanged. Which one of the following bonds should you purchase
If you expect the interest rates to decline soon but the bond market is remained unchanged. Which one of the following bonds should you purchase now to maximize your gains?
a. Long-term bond with high coupon.
b. Short-term bond with high coupon.
c. Long-term bond with low coupon.
d. Long-term bond with zero coupon.
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