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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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