Question: For debt instruments, if interest rates increase: Question 5 options: 1) prices of long-term bonds will fall more than short-term bonds 2) prices of short-term

For debt instruments, if interest rates increase:

Question 5 options:

1)

prices of long-term bonds will fall more than short-term bonds
2)

prices of short-term bonds will increase more than long-term bonds
3)

the coupons of long-term bonds will increase more than short-term bonds
4)

coupons of long-term bonds will increase more than short-term bonds

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