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Q21. Which of the following statements about bonds are true? a. The bond price and yield of the bonds are positively related. b. Long-term bonds

Q21. Which of the following statements about bonds are true?

a.

The bond price and yield of the bonds are positively related.

b.

Long-term bonds are more responsive to interest rate change than short-term bonds.

c.

All other answers are correct.

d.

If interest rates are expected to decrease, more investors will prefer holding short-term bonds.

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