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(1) The value (price) of a bond is inversely related to changes in interest rates (and ytm). (2) Holding yields constant, price will converge
" (1) The value (price) of a bond is inversely related to changes in interest rates (and ytm). (2) Holding yields constant, price will converge to par value as we approach the maturity date of a bond. "
(1) is True but (2) is False | ||
(1) is False but (2) is True | ||
(1) and (2) are both False. | ||
(1) and (2) are both True. |
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