Which of the following statements regarding bond price and interest rates is true?
A) The longer the time to maturity, the greater the percentage decline in bond value for a given rise in interest rates
B) The longer the time to maturity, the greater the percentage decline in bond value for a given decline in interest rates
C) The longer the time to maturity, the smaller the percentage decline in bond value for a given rise in interest rates
D) The longer the time to maturity, the smaller the percentage rise in bond value for a given rise in interest rates
Correct Answer:
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