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Determine whether the below statements are true or false. I. Bond prices are inversely related to interest rates. II. The smaller a bonds duration, the
Determine whether the below statements are true or false. I. Bond prices are inversely
related to interest rates. II. The smaller a bonds duration, the greater its interest-rate
risk.
(a) Both are true.
(b) I is true, II false.
(c) I is false, II true.
(d) Both are false.
justify answer
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
