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Which of the Following Statements Is True

Question 76

Multiple Choice

Which of the following statements is true?


A) An increase in interest rates leads to an increase in the market value of financial securities.
B) Value of longer term securities decreases at a diminishing rate for increases in interest rates.
C) Value of longer term securities increases at an increasing rate for any decline in interest rates.
D) The shorter the maturity of a fixed income asset or liability,the greater the fall in market value for any given interest rate increase.

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