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Question
Everything else the same, if the yield to maturity decreased 1 percentage point, which of the following bonds would have the largest percentage increase in value?a. A 25-year 11% coupon bond.
b. A 25-year 7.5% coupon bond.
c. A 25-year zero-coupon bond.
d. A 3-year zero coupon bond.
e. A 3-year bond with a 7.5% coupon.
Answer
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Related questions
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