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Which of the following is(are) correct, all else constant? I. Bond prices and interest rates always move in the same direction. II. The value of

Which of the following is(are) correct, all else constant?

I. Bond prices and interest rates always move in the same direction.

II. The value of a bond equals the present value of its future coupon payments.

III. The yield to maturity on a bond changes as market interest rates change.

  1. I only.

  2. II only.

  3. III only.

  4. II and III only.

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