Question
Which of the following statements is FALSE with respect to the sensitivity of a bond price to interest rate changes, other things being equal? A.
Which of the following statements is FALSE with respect to the sensitivity of a bond price to interest rate changes, other things being equal?
A. Bonds with low coupon rates are more sensitive to interest changes than those with high coupon rates for the same maturities
B. Bonds with high coupon rates are more sensitive to interest changes than those with low coupon rates for the same maturities
C. Long-term bonds' prices are more sensitive to interest changes than short term bonds for the same coupon rates D. Long-term low-coupon bonds' prices are more sensitive to interest changes than short-term high-coupon bonds
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