An investor who expects declining interest rates would maximize her capital gain by purchasing a bond that has a _________ coupon and a _________ term to maturity.

An investor who expects declining interest rates would maximize her capital gain by purchasing a bond that has a _________ coupon and a _________ term to maturity. 



A. low; long

B. high; short

C. high; long

D. zero; long



Answer: D


Finance

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