Question: If two bonds have the same maturity, but different coupon rates and interest rates fall, Multiple Choice The bond with the higher coupon will have

 If two bonds have the same maturity, but different coupon rates

If two bonds have the same maturity, but different coupon rates and interest rates fall, Multiple Choice The bond with the higher coupon will have the greater proportionate increase in price. The bond with the lower coupon will have the greater proportionate increase in price. The bond with the higher coupon will have the greater proportionate decrease in price. The bond with the lower coupon will have the greater proportionate decrease in price. Both bonds will experience the same proportionate change in price

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