FIN 351 CHAPTER 12 QUIZ 39

FIN 351 CHAPTER 12 QUIZ 39

 Which of the following bond pricing rules is incorrect?
A. Bond prices and interest rates are inversely related
B. Prices of long-term bonds are less sensitive to changes in interest rates than short-term bonds
C. Bond price sensitivity increases at a decreasing rate as maturity increases
D. Bond prices are more sensitive to a decline in market yield to maturity

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