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Which of the following accurately describes the behavior of bond prices? (Assume annual interest payments and discounting.) If interest rates rise so that the market

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Which of the following accurately describes the behavior of bond prices? (Assume annual interest payments and discounting.) If interest rates rise so that the market required rate of return increases, the bond's price will fall. For a given change in market required rate of retum, the price of a bond will change by proportionally less, the lower the coupon. When the market required rate of retum equals the stated coupon rate, the price of the bond be greater than its face value. For a given change in the market required rate of return, the price of a bond will change by a smaller amount, the longer its maturity. None of above

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