Because Bond Prices Are Sensitive to Changes in Interest Rates

question 144

Multiple Choice

Because bond prices are sensitive to changes in interest rates:

• A)bonds hardly ever sell in the secondary market at their face value.
• B)bond prices are constantly changing.
• C)interest rates in excess of the coupon rate cause the bond to sell at a discount, while interest rates below the coupon rate cause the bond to sell at a premium.
• D)All of the above

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