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Which of the following statements is CORRECT? a. Relative to a coupon-bearing bond with the same maturity, a zero coupon bond has more interest rate
Which of the following statements is CORRECT? a. Relative to a coupon-bearing bond with the same maturity, a zero coupon bond has more interest rate price risk but less reinvestment rate risk. b. If interest rates increase, all bond prices will increase, but the increase will be greater for bonds that have less interest rate risk. c. Long-term bonds have less interest rate price risk and also less reinvestment rate risk than short-term bonds. d. Long-term bonds have less interest rate price risk but more reinvestment rate risk than short-term bonds. e. One advantage of a zero coupon Treasury bond is that no one who owns the bond has to pay any taxes on it until it matures or is sol
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