Question: onstruct some simple examples to illustrate your answers to the following: ( a ) If interest rates rise, do bond prices rise or fall? (
onstruct some simple examples to illustrate your answers to the following:a If interest rates rise, do bond prices rise or fall?b If the bond yield is greater than the coupon, is the price of the bond greater or less than c If the price of a bond exceeds is the yield greater or less than the coupon?d Do highcoupon bonds sell at higher or lower prices than lowcoupon bonds?If interest rates change, does the price of highcoupon bonds change proportionately more than that of lowcoupon bonds?
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