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Which One of the Following Is Correct Concerning Bond Prices

Question 331

Multiple Choice

Which one of the following is correct concerning bond prices?


A) All else equal, a 12% bond will sell at a higher price than a 10% bond.
B) The price of a short-term bond is more sensitive to interest rate changes than the price of a Long-term bond.
C) The price of a zero-coupon bond is less sensitive to interest rate changes than the price of a coupon bond.
D) Bond prices tend to fluctuate more the less time to maturity.
E) Movements in bond prices are directly related to movements in the market rate of interest.

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