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You expect interest rates to decline and wish to capitalize on the anticipated changes in bond prices. To realize your maximum gain, all else constant,
You expect interest rates to decline and wish to capitalize on the anticipated changes in bond prices. To realize your maximum gain, all else constant, you should purchase _____bonds?
a. short-term; low coupon
b. short term;high coupon
c long-term; zero coupon
d long-term; low coupon
e long-term; high coupon
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