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Which of the following statements is FALSE? A. O B. C. As interest rates and bond yields fall, bond prices will rise. Shorter maturity zero

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Which of the following statements is FALSE? A. O B. C. As interest rates and bond yields fall, bond prices will rise. Shorter maturity zero coupon bonds are less sensitive to changes in interest rates than are longer-term zero coupon bonds. Bond prices converge to the bond's face value due to the time effect, but simultaneously move up and down due to unpredictable changes in bond yields ) D. Bonds with higher coupon rates are more sensitive to interest rate changes

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