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Market economists all predict a decrease in interest rates. An astute bond manager wishing to maximize her capital gain might choose which of the following

Market economists all predict a decrease in interest rates. An astute bond manager wishing to maximize her capital gain might choose which of the following bond? Assume other characteristics of these bonds are identical except year to maturity and coupon rate.

A)

8-year maturity, 6% coupon

B)

8-year maturity, 11% coupon

C)

15-year maturity, 6% coupon

D)

15-year maturity, 11% coupon

E)

15-year maturity, 15% coupon

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