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1. (6 points) Write 'T' if the statement is true and 'F' if the statement is false. Explain why. a) When comparing two bonds with

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1. (6 points) Write 'T' if the statement is true and 'F' if the statement is false. Explain why. a) When comparing two bonds with the same characteristics, the longer the time-to-maturity, the higher the interest rate risk. b) If market interest rate increases shortly after the bond is issued, the bond's coupon rate will increase, and its price goes down

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