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Victor is forecasting that all interest rates across the economy will rise by 1%. If Victor's forecast is correct, which of the following bonds would
Victor is forecasting that all interest rates across the economy will rise by 1%.
If Victor's forecast is correct, which of the following bonds would have greatest percentage decrease in value.
Pick 1
1-year, 10% coupon bond.
20-year, 5% coupon bond.
5-year, 5% coupon bond.
10-year, 5% coupon bond.
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