Which of the canadian bonds would likely show

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Problem 1: Suppose a recently published report indicates inflation in both Canada and the U.S. is at an all time low and the Canadian dollar is strengthening. You hear a news report that the bond market has rallied (prices have increased). Which of the following Canadian bonds would likely show the highest % price increase? Why?

i. Low coupon, short-term

ii. High coupon, long-term

iii. High coupon, short-term

iv. Low coupon, long-term

Reference no: EM132686483

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