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8. (10 points) Which of the following statements about the relationship between interest notes and bond prices is fake? a. There is an inverse relationship

image text in transcribed 8. (10 points) Which of the following statements about the relationship between interest notes and bond prices is fake? a. There is an inverse relationship between interest rates and bond prices, and the prioe of ken-ferm bonds floctuate more than the price of short-term bonds for a given change in interest rates (assuming that the coupon rate is the same for boch bonds) b. There is an inverse relationship between bond prices and interest rates, and the price of bonds with low. coupon rates fluctuates more than the price of bonds with high coupon rates for a given clange in interest rates (assuming that the time to malurity is tho same for both bonds). c. There is a direct relation ship berween beed prices asd interest rates, and the price of long-senm bonds fluctuates more than the price of short-tem bonds for a given change in interest nates (assuming that the coupon nite is the sime for both bonds). d. There is an inverse relationship between interest rates and bond prices for both coupon-paying bectids and zero-coupon bonds

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