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Interest rate risk refers to the fluctuations in bond prices due to a change in market interest rates. Bonds with ________ time to maturity experience

Interest rate risk refers to the fluctuations in bond prices due to a change in market interest rates. Bonds with ________ time to maturity experience a ________ change in price.

a. longer; smaller.

b. shorter; larger.

c. longer; greater.

d. shorter; greater.

e. Statements c and d are correct.

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