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In a falling interest rate environment, which of the following bonds would be the most affected? a) A bond with a coupon rate of 12%
In a falling interest rate environment, which of the following bonds would be the most affected?
a) A bond with a coupon rate of 12% and term to maturity of eight years.
b) A bond with a coupon rate of 4% and term to maturity of nine years.
c) A bond with a coupon rate of 7% and term to maturity of five years.
d) A bond with a coupon rate of 9% and term to maturity of three years.
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