Which bond would give highest return based on expectation

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Reference no: EM132773116

Problem 1: If expect the market interest rate will keep decreasing in the future, which of the following bond would give the highest return based on this expectation?

Select one:

a. A 5-year 10% coupon bond
b. A 3-year zero coupon bond
c. A 2-year 10% coupon bond
d. A 20-year 5% coupon bond
e. A 30-year zero coupon bond

Reference no: EM132773116

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