Which of the Following Bonds Will Have the Largest Percentage

question 77

Multiple Choice

Which of the following bonds will have the largest percentage increase in value if interest rates decrease by 1 percent?

• A) 2-year, 5 percent coupon bond
• B) 30-year, 10 percent coupon bond
• C) 10-year, zero-coupon
• D) 30-year, zero-coupon

Analyze the business cycle's phases and their economic implications.

Evaluate different industries' sensitivity to the business cycle and their investment potential.

Understand the principles of demand-side economics and its components.

Identify leading, coincidental, and lagging economic indicators and their significance.

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Definitions:

Objective Standards

Criteria independent of the parties' personal intentions or beliefs, used to assess behavior or performance.

Rational Ethics

A branch of ethics focused on determining right and wrong actions based on reasoning and logical analysis rather than on emotions or social customs.

Philosophical Theory

A set of ideas or principles that form the basis of a philosophical system, addressing fundamental questions about life, the universe, and everything.

Human Reason

The faculty of the mind which forms the basis for logical thought, understanding, and decision-making.