Its Yield to Maturity Declined by 1%, Which of the Following

question 8

Multiple Choice

its yield to maturity declined by 1%, which of the following bonds would have the largest percentage increase in value?

• A) A 1-year bond with an 8% coupon.
• B) A 10-year bond with an 8% coupon.
• C) A 10-year bond with a 12% coupon.
• D) A 10-year zero coupon bond.
• E) A 1-year zero coupon bond.

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Definitions:

Social Capital

The ability to get things done because of who you know.

Intellectual Capital

The collective brainpower or shared knowledge of a workforce.

Channel Richness

The capacity of a communication channel to effectively convey and clarify complex information.

Building Credibility

The process of establishing oneself or an organization as trustworthy and competent in a particular field.