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Suppose that all interest rates in the economy decline from 10 percent to 9 percent. Determine the largest percentage increase in price?

[A] A 10-year bond with a 10 percent coupon

[B] A 10-year zero coupon bond

[C] An 8-year bond with a 9 percent coupon

[D] A 1-year bond with a 15 percent coupon.

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Category:- Basic Finance
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