An Equal Decrease in All Bond Interest Rates

question 105

Multiple Choice

An equal decrease in all bond interest rates

• A)increases the price of a five-year bond more than the price of a ten-year bond.
• B)increases the price of a ten-year bond more than the price of a five-year bond.
• C)decreases the price of a five-year bond more than the price of a ten-year bond.
• D)decreases the price of a ten-year bond more than the price of a five-year bond.

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