As the Ytm of a Bond Rises, Which of the Following

question 2

Multiple Choice

As the ytm of a bond rises, which of the following is most valid?

• A) The bond price rises, slowly at low ytm, then more rapidly at higher ytm.
• B) The bond price falls, slowly at low ytm, then more rapidly at higher ytm..
• C) The bond price rises, rapidly at low ytm, then more slowly at higher ytm.
• D) The bond price falls, rapidly at low ytm, then more slowly at higher ytm.

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