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Relative to a Decrease in Interest Rates,an Increase in Interest

Question 2

Multiple Choice
Relative to a decrease in interest rates,an increase in interest rates of the same size will produce:

Relative to a decrease in interest rates,an increase in interest rates of the same size will produce:


A) a larger percentage change in a bond's price.
B) a smaller percentage change in a bond's price.
C) the same sized change in a bond's price.
D) no change in the bond's price since its coupon rate is fixed.

Correct Answer:

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