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Which of the following statements is/are true? (I) If you think yield rates are going to rise, then you should have a bond portfolio with

Which of the following statements is/are true?

(I) If you think yield rates are going to rise, then you should have a bond portfolio with a short duration.

(II) The interest rate risk is greater for short-term bonds than for longer term bonds with the same coupon.

  • A.

    I only

  • B.

    II only

  • C.

    Neither

  • D.

    Both

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