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Which of the Following Statements Is TRUE

Question 20

Multiple Choice

Which of the following statements is TRUE?


A) Prices of bonds with lower durations are more sensitive to interest rate changes.
B) If a bond's yield to maturity exceeds its coupon rate,the bond trades at a premium.
C) Bonds with higher coupon rates are more sensitive to interest rate changes.
D) If a bond's yield to maturity is less than its coupon rate,the bond trades at a premium.

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