When Bonds Sell Above Par, What Is the Relationship of Price

question 63

Multiple Choice

When bonds sell above par, what is the relationship of price sensitivity to rising interest rates?

• A) Price volatility increases at an increasing rate.
• B) Price volatility increases at a decreasing rate.
• C) Price volatility decreases at a decreasing rate.
• D) Price volatility decreases at an increasing rate.

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