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Which of the following statements is true? A. Bond prices and interest rates move together. B. Short-term securities have large price swings relative to long-term
Which of the following statements is true? A. Bond prices and interest rates move together. B. Short-term securities have large price swings relative to long-term securities. C. The higher the coupon, the lower the price of a bond. D. Coupon rates are fixed at the time of issue on standard bonds. An investor who selects a zero coupon bond with a maturity matching his/her holding period A. can precisely predict the rate of return on the bond. B. has eliminated price risk, but not reinvestment risk. C. has eliminated all interest rate risk. D. has eliminated reinvestment risk, but not price risk
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