Question: Which answer is FALSE regarding bond prices and interest rates? A.) Bond prices and interest rates move in opposite directions. B.) The prices of short-term

Which answer is FALSE regarding bond prices and interest rates?

A.) Bond prices and interest rates move in opposite directions.

B.) The prices of short-term bonds display greater price sensitivity to interest rate changes than do the prices of long-term bonds.

C.) Interest rate risk can be described as the risk that changes in market interest rates will cause fluctuations in the bonds price.

D.) The price of a bond is the present value of the coupon payments and the face value.

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