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Which of the following statement(s) about bond valuation is/are true? Group of answer choices None of the answers is correct. Both the answers (A&B) are
Which of the following statement(s) about bond valuation is/are true? Group of answer choices
None of the answers is correct.
Both the answers (A&B) are correct.
A. For option-free bonds, the size and timing of the bonds cash flows do not get impacted by the changes in interest rates.
B. For option-embedded bonds, their expected future cash flows are interest rate dependent.
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