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30 November, 23:10

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

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  1. 1 December, 02:42
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    Answer: 20-year, zero coupon bond.
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