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You are expecting the following: All interest rates across the economy will fall by 2%. If you expectations are correct, which of the following par
You are expecting the following: All interest rates across the economy will fall by 2%. If you expectations are correct, which of the following par priced bonds would have greatest percentage increase in value. HINT: You do not need to do any calcuations to answer this question! 13-year, 4% coupon bond. 10 -year, 6% coupon bond. 5-year, 10% coupon bond. 8 -year, 4% coupon bond. 1-year, 10% coupon bond
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