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You expect interest rates to increase in the near future even though the bond market is not indicating any sign of this change. Which one
You expect interest rates to increase in the near future even though the bond market is not indicating any sign of this change. Which one of the following bonds is the worst bond to purchase now if the rate increase does occur?
Group of answer choices
Short-term; high coupon
Short-term; low coupon
Long-term; zero coupon
Long-term; low coupon
Long-term; high coupon
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