Bonds valuation


Problem: Which of the following bonds have the greatest percentage increase in value if all interest rates decrease by 1%? 20-year, zero coupon bond, 10-year, zero coupon bond, 20-year, 10% coupon bond, 20-year, 5% coupon bond, or 1-year, 10% coupon bond.

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Accounting Basics: Bonds valuation
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