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If there is an unexpected increase in the interest rate, the market price of an outstanding long term bond (for example, one that will not

If there is an unexpected increase in the interest rate, the market price of an outstanding long term bond (for example, one that will not mature for another 20 years) will generally

a.increase proportionally.

b.increase, but by less than the proportional increase in the interest rate.

c.decrease.

d.remain the same, the market value of outstanding bonds is unaffected by the interest rate.

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