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How an increase in interest rate affects bond prices? Question 6 options: It increases the price of premium bonds and decrease the price of discounted

How an increase in interest rate affects bond prices?

Question 6 options:

It increases the price of premium bonds and decrease the price of discounted bonds

It decreases the price of premium bonds and increase the price of discounted bonds

It increases the price of both premium and discounted bonds

It decreases the price of both premium and discounted bonds

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