Question: Answer? QUESTION 5 4 points Savea Which of the following statements regarding bond interest rate risk and interest rate sensitivity is NOT correct? A Interest

Answer? QUESTION 5 4 points Savea Which of the following statements

Answer?

QUESTION 5 4 points Savea Which of the following statements regarding bond interest rate risk and interest rate sensitivity is NOT correct? A Interest rate risk is inversely related to bond's coupon rate; low-coupon bonds are more sensitive to interest rates. Long-term bond prices more sensitive to interest rate changes than short term bonds Increase in bond's yield to maturity results in smallere price change than yield decrease of equal magnitude. D As maturity increases, senstivity of bond prices to changes in yields increases at decreasing rate OE Sensitivity of bond's price-to-yield change is positively related to current yield to maturity

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