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Which set of conditions will result in a bond with the greatest price volatility? A. B. C. A high coupon and a long maturity A
Which set of conditions will result in a bond with the greatest price volatility? A. B. C. A high coupon and a long maturity A low coupon and a short maturity A low coupon and a long maturity All of the following are one of the stated bond relations between yield changes and bond prices EXCEPT A. Other things equal, option-free bond price volatility is inversely related to the coupon rate Long-maturity bonds experience larger price changes than shorter-maturity bonds given same interest rate change. C. Bond price movements resulting from equal absolute increases or decreases in yield are symmetric. B
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