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Bond Valuation

Which of the following bonds have the greatest percentage increase in value if all interest rates decrease by 1%? 20-year, zero coupon bond, 10-year, zero coupon bond, 20-year, 10% coupon bond, 20-year, 5% coupon bond, or 1-year, 10% coupon bond.

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Which of the following bonds have the greatest percentage increase in value if all interest rates decrease by 1%? 20-year, zero coupon bond, 10-year, zero coupon bond, ...

Solution Summary

Finds out which of the bonds has the greatest percentage increase in value if all interest rates decrease by 1%.

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