Question: why is the answer true? Problem 1: True or False [15 marks] 1. There are three bonds, Bond A, Bond B and Bond C. These

why is the answer true?

Problem 1: True or False [15 marks] 1. There are three bonds, Bond A, Bond B and Bond C. These are coupon bonds. The only difference between these bonds is time to maturity. Judging from the price-yield relationship presented in the following figure, Bond A has the longest time to maturity among the three (TRUE/FALSE) 300 250 Bond A 2005 Bond B Bond C Price 150 I 100 LO 0.02 0.04 0.06 0.08 0.1 Yield 0.12 0.14 0.16 0.18 0.2

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