Increase in the required rate of return on all bonds

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Reference no: EM131518824

Which bond would have the greatest change in value given a 1% increase in the required rate of return on all bonds?

An 8% coupon one-year bond.

An 8% coupon consol bond.

All bonds would have the same change in value.

An 8% coupon 20-year bond.

Reference no: EM131518824

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