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The statement Bond prices vary inversely with changes in the market rate of interest means that if the market rate of interest increases, the contractual

The statement "Bond prices vary inversely with changes in the market rate of interest" means that if the

market rate of interest increases, the contractual interest rate will decrease.

market rate of interest decreases, then bond prices will go up

.

contractual interest rate increases, then bond prices will go down.

contractual interest rate increases, the market rate of interest will decrease.

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