When interest rates shift, the price of zero coupon bonds:
A) are more volatile as compared with short-term bonds of the same maturity.
B) are less volatile as compared with short-term bonds of the same maturity.
C) are more volatile as compared with long-term bonds of the same maturity.
D) are less volatile as compared with long-term bonds of the same maturity.
E) Both A and C.
Correct Answer:
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