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Which Set of Conditions Will Result in a Bond with the Greatest

Question 7

Multiple Choice

Which set of conditions will result in a bond with the greatest volatility?


A) A high coupon and a short maturity
B) A high coupon and a long maturity
C) A low coupon and a short maturity
D) A low coupon and a long maturity
E) A deferred call feature and a sinking fund.

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