Which of the following statements regarding bond pricing is true? a. The lower the required return, the
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Question:
Which of the following statements regarding bond pricing is true?
a. The lower the required return, the more valuable the coupon payments are today.
b. The market price of outstanding bond issues often varies from par value because the coupon rate has changed.
c. When inflation rises, bond prices also rise, all else the same.
d. Bonds with short maturities are generally (all else the same) more sensitive to changes in interest rates than bonds with longer maturieies.
e. All else the same, bonds with larger coupon payments will have a lower price today.
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