Assume that all interest rates in the economy decline from 10% to 9%. Which of...
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Finance
Assume that all interest rates in the economy decline from 10% to 9%. Which of the following bonds would have the largest percentage increase in price? Why?
| An 8-year bond with a 9% coupon. |
| A 1-year bond with a 15% coupon. |
| A 3-year bond with a 10% coupon. |
| A 10-year zero coupon bond. |
| A 10-year bond with a 10% coupon. |
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