Which of the following statements is false?
A) Bond prices and yields are inversely related.
B) An increase in a bond's YTM results in a smaller price change than a decrease in yield of equal magnitude.
C) Prices of short-term bonds tend to be more sensitive to interest rate changes than prices of long-term bonds.
D) Interest rate risk is inversely related to the bond's coupon rate.
Correct Answer:
Verified
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