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Sarafina has bonds in her portfolio. She wants to know about her position in the bond market. Specifically, when dealing with the bond market, will

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Sarafina has bonds in her portfolio. She wants to know about her position in the bond market. Specifically, when dealing with the bond market, will she fare better when the yield to maturity increases or when it decreases? As such, her portfolio manager would tell her that bondholders fare worse when the yield to maturity: O A decreases, since this represents an increase in the price of the bond and a decrease in potential capital losses OB. increases, since this represents a decrease in the price of the bond and a decrease in potential capital gains. OC. decreases, since this represents an increase in the coupon payment and an increase in potential capital gains. OD. Increases, since this represents a decrease in the bond maturity and a decrease in potential capital

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