For Debt Instruments,if Interest Rates Increase

question 28

Multiple Choice

For debt instruments,if interest rates increase:

• A) prices of long-term bonds will increase more than short-term bonds.
• B) prices of short-term bonds will increase more than long-term bonds.
• C) the coupons of long-term bonds will increase more than short-term bonds.
• D) coupons of long-term bonds will increase more than short-term bonds.

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