Interest rates are about to fall in the eurozone

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Reference no: EM131558719

You predict that interest rates are about to fall in the eurozone. Which bond among the following in the euro should you buy because it will perform the largest capital gain? Explain.

a. 5% coupon, 5-year maturity

b. 10% coupon, 1-year maturity

c. 10% coupon, 30-year maturity

d. Zero coupon, 30-year maturity

Reference no: EM131558719

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