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Which of the following bonds will provide the largest capital gain if interest rates decrease? 2 - year 6 % coupon Treasury 1 0 -

Which of the following bonds will provide the largest capital gain if interest rates decrease?

2 -

year

6 %

coupon Treasury

10 -

year

6 %

coupon Treasury

15 -

year

6 %

coupon Treasury

30 -

year zero coupon Treasury.

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