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 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.
Correct Answer:

Verified
Correct Answer:
Verified
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