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An Unexpected Decrease in Market Interest Rates Will Cause A

Question 78

Multiple Choice

An unexpected decrease in market interest rates will cause a:


A) coupon bond's current yield to increase.
B) zero coupon bond's price to decrease.
C) fixed-rate bond's coupon rate to decrease.
D) zero coupon bond's current yield to decrease.
E) coupon bond's yield to maturity to decrease.

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