An investor has an expectation that the market interest rate would keep going down. Considering the bond

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An investor has an expectation that the market interest rate would keep going down. Considering the bond pricing theorem, which one of the following bonds would the investor most likely purchase?

A. 5% coupon bond that matures in 3 years.

B. 10% coupon bond that matures in 3 years.

C. Zero coupon bond that matures in 5 years.

D. 10% coupon bond that matures in 5 year

Related Book For answer-question

Statistics and Data Analysis for Financial Engineering

ISBN: 978-1461427490

1st edition

Authors: David Ruppert

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Posted Date: Jan 12, 2021 12:46 PM

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An investor has an expectation that the market interest rate would keep going down. Considering the bond

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The right option is c Explanation Rule 1 Higher maturity bonds are more se... View the full answer

Statistics and Data Analysis for Financial Engineering

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