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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%? 5-year, zero
Which of the following bonds would have the greatest percentage increase in value if all interest rates in the economy fall by 1%?
5-year, zero coupon bond. | ||
30-year, 15% coupon bond. | ||
30-year, zero coupon bond. | ||
1-year, 15% coupon bond. | ||
30-year, 5% coupon bond. |
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