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Business, 15.11.2019 01:31 Delgadojacky0206

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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