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Holding everything else constant, as the coupon rate of the bond is decreased its interest rate risk ____________: A. Increases B. Goes up or down
Holding everything else constant, as the coupon rate of the bond is decreased its interest rate risk ____________:
A. | Increases | |
B. | Goes up or down depending on whether the bond is trading at a premium or discount. | |
C. | Goes up or down depending on whether the maturity is short or long. | |
D. | Does not change | |
E. | Decreases |
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