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7. A low coupon bond will have more price elasticity i.e., more sensitive to interest rate changes) than a high coupon bond. 8. Other things

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7. A low coupon bond will have more price elasticity i.e., more sensitive to interest rate changes) than a high coupon bond. 8. Other things held constant, increasing a stock's required rate of return will increase the price you are willing to pay for the stock. 9. The price of an outstanding corporate bond decreases as the yield on similar securities with similar maturity and risk increases. 10. According to the "green video" on the recent financial crisis, one of the factors that ultimately encouraged subprime lending was the low interest rates set by the Federal Reserve

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