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The Sensitivity of Coupon Price to Change in Its Yield

Question 345

Multiple Choice

The sensitivity of coupon price to change in its yield:


A) Is directly related to the bond's yield
B) Is inversely related to the bond's yield to maturity
C) Is greater for increases in yield to maturity than it is for decreases in yield to maturity
D) Is constant regardless of whether the yield to maturity increases or decreases

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