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Which of the Following Statements Is True

Question 22

Multiple Choice

Which of the following statements is true?


A) For a given change in market interest rates, the prices of higher-coupon bonds change more than the prices of lower-coupon bonds.
B) If market interest rates rise, a 1-year bond will fall in value more than a 10-year bond.
C) If market interest rates rise, bond prices will rise.
D) If market interest rates rise, a 10-year bond will fall in value more than a 1-year bond.

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