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Suppose interest rates suddenly fall. Which of these bonds should see the least dramatic change in price?

Suppose interest rates suddenly fall. Which of these bonds should see the leastdramatic change in price? 

$10,000 par value, zero coupon, 4-year maturity

$10,000 par value, zero coupon, 10-year maturity 

$10,000 par value, 3% coupon, 4-year maturity 

$10,000 par value, 3% coupon, 10-year maturity 

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Option C : $10,000 par... View the full answer

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