(I)To Sell an Old Bond When Interest Rates Have Risen,the

Multiple Choice

(I) To sell an old bond when interest rates have risen,the holder will have to discount the bond until the yield to the buyer is the same as the market rate.
(II) The risk that the value of a bond will fall when market interest rates rise is called interest-rate risk.

A) (I) is true, (II) false.
B) (I) is false, (II) true.
C) Both are true.
D) Both are false.