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11-11For Traditional Debt Securities Which of the Following Is False

Question 6

Multiple Choice

11-11.For traditional debt securities which of the following is false?


A) cash flows are fixed in terms of amount and payment date
B) for treasury bonds or (non-callable) corporate debt,an increase in the market rate of interest will lower their value
C) the longer the duration (similar to maturity) of the obligation,the less the changes in value as a result of a change in market rates
D) mortgage securities are very dissimilar to traditional types of debt

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