Which of the Following Statements Is True

question 11

Multiple Choice

Which of the following statements is true?

• A) The lower the price of a bond, relative to its face value, the lower the interest rate.
• B) The lower the price of a bond, relative to its maturity, the lower the interest rate.
• C) The higher the price of a bond, relative to its face value, the higher the interest rate.
• D) The lower the price of a bond, relative to its face value, the higher the interest rate.

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