For debt instruments, if interest rates increase:

Question 5 options:

1)
prices of long-term bonds will fall more than short-term bonds

2)
prices of short-term bonds will increase more than long-term bonds

3)
the coupons of long-term bonds will increase more than short-term bonds

4)
coupons of long-term bonds will increase more than short-term bonds

Question

For debt instruments, if interest rates increase:

Question 5 options:

1)	prices of long-term bonds will fall more than short-term bonds

2)	prices of short-term bonds will increase more than long-term bonds

3)	the coupons of long-term bonds will increase more than short-term bonds

4)	coupons of long-term bonds will increase more than short-term bonds

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