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Which of the Following Statements About Bonds Is True

Question 93

Multiple Choice

Which of the following statements about bonds is true?


A) As the maturity date of a bond approaches,the market value of a bond will become more volatile.
B) Long-term bonds have less interest rate risk than do short-term bonds.
C) Bond prices move in the same direction as market interest rates.
D) If market interest rates are above a bond's coupon interest rate,then the bond will sell below its par value.
E) None of the above.

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