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Which of the Following Bonds Will Experience the Greatest Percentage

Question 37

Multiple Choice

Which of the following bonds will experience the greatest percentage change in price for a given change in interest rates?


A) a bond with 5 years to maturity that pays a 5% coupon
B) a bond with 10 years to maturity that pays a 5% coupon
C) a bond with 5 years to maturity that pays a 7% coupon
D) a bond with 10 years to maturity that pays a 7% coupon

Correct Answer:

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