Which of the Following Bonds Would Have the Greatest Percentage

question 11

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:

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A rare psychiatric disorder characterized by reversible amnesia for personal identity, including the memories, personality, and other identifying characteristics of individuality.

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