Which of the following is TRUE?
A) A bond's price moves to par value as it approaches maturity.
B) The shorter a bond has to maturity, the less sensitive the bond's price is to changes in market interest rates.
C) The longer a bond has to maturity, the more sensitive the bond's price is to changes in market interest rates.
D) Both b &c
E) All of the above
Correct Answer:
Verified
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