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Suppose interest rates suddenly fall. Which of these bonds should see the most dramatic change in price? $1,000 par value, 9% coupon, 5-year maturity $1,000
Suppose interest rates suddenly fall. Which of these bonds should see the most dramatic change in price?
$1,000 par value, 9% coupon, 5-year maturity | ||
$1,000 par value, 9% coupon, 10-year maturity | ||
$1,000 par value, zero coupon, 5-year maturity | ||
$1,000 par value, zero coupon, 10-year maturity |
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