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Assume that all interest rates in the economy decline from 10 percent to 9 percent. Which of the following bonds will have the LARGEST percentage
Assume that all interest rates in the economy decline from 10 percent to 9 percent. Which of the following bonds will have the LARGEST percentage increase in price?
a. 20-year, 2 percent coupon
b. 20-year, 20 percent coupon
c. 2-year, 2 percent coupon
d. 2-year, 20 percent coupon