Which of the Following Bonds Would Have the Greatest Percentage

question 29

Multiple Choice

Which of the following bonds would have the greatest percentage increase in value if all interest rates fall by 1%?

• A) 10-year, zero coupon bond.
• B) 20-year, 10% coupon bond.
• C) 20-year, 5% coupon bond.
• D) 1-year, 10% coupon bond.
• E) 20-year, zero coupon bond.

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Definitions:

Anorexia Nervosa

An eating disorder characterized by intense fear of gaining weight, disturbed body image, refusal to maintain normal weight, and use of dangerous measures to lose weight.

Disturbed Body Image

A psychological condition where a person has a distorted perception of their body, leading to dissatisfaction and possible mental health issues.

Gaining Weight

The process of increasing in body mass, often as a result of excess calorie intake or decreased physical activity.

Personality Disorder

A kind of psychological disorder defined by persistent unhealthy patterns of thinking, behaving, and feeling that are apparent in various situations and significantly differ from what is considered normal by the person's cultural standards.