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Which of the following statements is CORRECT? A. All else equal, an increase in interest rates will have a greater effect on the prices of

Which of the following statements is CORRECT?

A.

All else equal, an increase in interest rates will have a greater effect on the prices of short-term than long-term bonds.

B.

If two bonds have the same maturity, the same yield to maturity, and the same level of risk, the bonds should sell for the same price regardless of their coupon rates.

C.

All else equal, an increase in interest rates will have a greater effect on higher-coupon bonds than it will have on lower-coupon bonds.

D.

If a bonds yield to maturity exceeds its coupon rate, the bonds price must be less than its maturity value.

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