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Suppose you purchased the following 2 0 - year bonds today at $ 1 , 0 0 0 each with a 1 0 % coupon
Suppose you purchased the following year bonds today at $ each with a coupon rate. Suppose interest rates are currently but rise to at the end of the year. Which bond will have the lowest rate of return at the end of the year?
Bond with more years until maturity
Bond that matures at the end of the year
Bond with more years until maturity
Bond with more years until maturity
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