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Which of the following bond pricing rules is / are correct? I. Bond prices are more sensitive when yields to maturity are high than when
Which of the following bond pricing rules isare correct?
I. Bond prices are more sensitive when yields to maturity are high than when interest rates are low.
IIyear bonds are more responsive to a change in interest rates than year bonds.
Choice from the following
A Neither I nor II is correct.
B II is correct
C I is correct.
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