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Which of the Following Statement Is Incorrect If Interest Rates

Question 338

Multiple Choice

Which of the following statement is incorrect if interest rates fall?


A) Bond prices will rise.
B) Coupon payments on floating rate bonds will fall.
C) The percentage price change for long-term bonds will be greater than for short-term bonds.
D) The percentage price change for low coupon bonds will be greater than for high coupon.
E) Coupon payments on floating rate bonds will rise.

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