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Suppose interest rates increase from 10.00% to 11.00%. Which bond will suffer the greater percentage decline in price: a 30-year bond paying annual coupons of
Suppose interest rates increase from 10.00% to 11.00%. Which bond will suffer the greater percentage decline in price: a 30-year bond paying annual coupons of 10.00% or a 30-year zero-coupon bond? 30-year 8% coupon bond 30-year zero-coupon bond
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