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When Interest Rates Shift,the Price of Zero Coupon Bonds Are

Question 44

Multiple Choice

When interest rates shift,the price of zero coupon bonds are ________ volatile ________


A) more; if they have a short maturity rather than a long maturity.
B) not; because their duration always matches their maturity.
C) equally; regardless of their maturity.
D) less; than coupon bonds of the same maturity.
E) more; than coupon bonds of the same maturity.

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