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Which of the Following Statements About Bonds Is True

Question 83

Multiple Choice

Which of the following statements about bonds is true?


A) Bond prices move in the same direction as market interest rates.
B) If market interest rates change, long-term bonds will fluctuate more in value than short-term bonds.
C) Long-term bonds are less risky than short-term bonds.
D) If market interest rates are higher than a bond's coupon interest rate, then the bond will sell above its par value.
E) None of the above.

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