Question: please please help I will rate. 7. A recently published report indicates inflation in both Canada and the U.S. is at an all time low

 please please help I will rate. 7. A recently published report

please please help I will rate.

7. A recently published report indicates inflation in both Canada and the U.S. is at an all time low and the Canadian dollar is strengthening. You hear a news report that the bond market has rallied and the yield curve has steepened (i.e., short-term rates fell more than long-term rates). Which of the following Canadian bonds would show the highest appreciation? Why? * Low coupon, short-term . High coupon, long-term . High coupon, short-term Low coupon, long-ternm

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