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Holding Other Factors Constant, Which One of the Following Bonds

Question 22

Multiple Choice

Holding other factors constant, which one of the following bonds has the smallest price volatility?

A) 20-year, 0% coupon bond
B) 20-year, 6% coupon bond
C) 20 year, 7% coupon bond
D) 20-year, 9% coupon bond
E) Cannot tell from the information given

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