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Which of the following is true about bonds? O b) The higher the coupon payment, the higher the interest rate risk O a) A decrease

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Which of the following is true about bonds? O b) The higher the coupon payment, the higher the interest rate risk O a) A decrease in market interest rate decreases the price of bonds O c) The shorter the maturity of the bond, the lower the interest rate risk O d) An increase in interest rate will cause a bond not to pay principal at maturity e) Bonds prices are not affected by prepayment risk

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