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Bond Theorem #3 states that high coupon bonds have less price volatility than low coupon bonds. Which of the following is the correct reason why
Bond Theorem #3 states that high coupon bonds have less price volatility than low coupon bonds. Which of the following is the correct reason why this is true? Multiple Choice High coupon bonds have greater price risk than low coupon bonds High coupon bonds have a lower proportion of their total cash flows occurring closer to today O High coupon bonds have less price risk than low coupon bonds High coupon bonds have a greater proportion of their total cash flows occurring closer to today
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