Business

16 May, 05:37

If its yield to maturity declined by 1%, which of the following bonds would have the largest percentage increase in value?

a. A 1-year zero coupon bond.

b. A 10-year bond with a 12% coupon.

c. A 10-year zero coupon bond.

d. A 1-year bond with an 8% coupon.

e. A 10-year bond with an 8% coupon.

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