Which of the following bonds would have the greatest percentage increase in value if all...
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Finance
Which of the following bonds would have the greatest percentage increase in value if all interest rates in the economy fall by 1%? Why?
| 10-year, zero coupon bond. |
| 20-year, 10% coupon bond. |
| 20-year, 5% coupon bond. |
| 1-year, 10% coupon bond. |
| 20-year, zero coupon bond.
|
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