An investor who expects declining interest rates would maximise their capital gain by purchasing a bond that has a ________ coupon and a ________ term to maturity.

Name: An investor who expects declining interest rates would maximise their capital gain by purchasing a bond that has a ________ coupon and a ________ term to maturity.
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Question

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A bond with a zero coupon and a long term to maturity will have the most price sensitivity to changes in interest rates, maximizing capital gains when rates decline.

An Investor Who Expects Declining Interest Rates Would Maximise Their