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If the market interest rate (the required rate of return that investors demand) unexpectedly increases, what effect would you expect this increase to have on
If the market interest rate (the required rate of return that investors demand) unexpectedly increases, what effect would you expect this increase to have on the prices of long-term bonds?
A) The prices of long-term bonds should first fall and then increase B) The effect of interest rate on price is not investigated yet C) The prices of long-term bonds should increase D) The prices of long-term bonds should fall E) The prices of long-term bonds will not depend on interest rate fluctuations
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