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Which of the following bonds would have the greatest percentage increase in value if all interest rates in the economy fall by 1%? 1. 10-year,

Which of the following bonds would have the greatest percentage increase in value if all interest rates in the economy fall by 1%?

1.

10-year, zero coupon bond.

2.

1-year, 10% coupon bond.

3.

20-year, zero coupon bond.

4.

20-year, 5% coupon bond.

5.

20-year, 10% coupon bond.

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