Which one of the following statements concerning bond yields or

bond prices is TRUE?

Select one:

O a$.$ The bond yield is likely to decrease if the expected rate of

inflation rises. $$ b$.$ A $10-$year Treasury bond issued with a face value of $$1000$

and a coupon of $$40$ will rise in price if the next day a new $10-$year Treasury bond with an identical face value is sold

with a coupon of $$30.$ C$.$ A bond with $5$ years to maturity will tend to fluctuate more in price than a bond with $10$ years to maturity as bond yields

fluctuate, other things being equal. $$ d$.$ A credit rating upgrade is likely to lead to a fall in the price

of the upgraded bond.