A change in interest rates for two 10-year bonds with coupon rates of 6% and 10% respectively will:
A) not impact on the prices of both bonds.
B) cause a similar level of changes for both bonds.
C) cause a bigger change in the price for the bond with a lower coupon rate than the bond with a bigger coupon rate.
D) cause a smaller change in the price of the bond with a lower coupon rate than the bond with a bigger coupon rate.
Correct Answer:
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