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Which of the Following Statements About Bonds Is True

Question 88

Multiple Choice

Which of the following statements about bonds is true?


A) If market interest rates are below a bond's coupon interest rate,then the bond will sell above its par value.
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) As the maturity date of a bond approaches,the market value of a bond will become more volatile.
E) None of the above.

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