Question: Everything else the same, if the yield to maturity decreased 1 percentage point, which of the following bonds would have the largest percentage increase in
Everything else the same, if the yield to maturity decreased 1 percentage point, which of the following bonds would have the largest percentage increase in value? a. A 25-year 11% coupon bond. b. A 25-year 7.5% coupon bond. c. A 25-year zero-coupon bond. d. A 3-year zero-coupon bond. e. A 3-year bond with a 7.5% coupon.
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