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Question
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.
Answer
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In a portfolio of three different stocks, which of the following could NOT be true?
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