Which of the Following Bonds Would Have the Greatest Percentage

question 21

Multiple Choice

Which of the following bonds would have the greatest percentage increase in value if all interest rates in the economy 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.

---

Definitions:

Divorce

The legal dissolution of a marriage by a court or other competent body, officially ending the relationship.

Divorce rates

The statistical measure of the number of divorces occurring within a defined population during a given time period.

Stepchildren

Children of one's spouse from a previous relationship.

Stepgrandchildren

Children of one's stepchildren, not biologically related but part of the extended family structure through marriage or partnerships.