Which of the Following Bonds Would Have the Greatest Percentage

question 71

Multiple Choice

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

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

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Definitions:

Refractory Periods

Intervals following an action potential during which a neuron or muscle cell is less responsive to further stimulation.

Neuron

A nerve cell that is the basic building block of the nervous system, responsible for receiving and transmitting information.

Firing Rate

The frequency at which a neuron discharges electrical impulses over a specific period of time.

Multiple Sclerosis

An autoimmune disease affecting the central nervous system, leading to impaired mobility and cognition.