If a Financial Institution's Bond Portfolio Contains a Relatively Large

If a financial institution's bond portfolio contains a relatively large portion of ____, it will be ____.

A) high-coupon bonds; more favorably affected by declining interest rates
B) zero- or low-coupon bonds; more favorably affected by declining interest rates
C) zero- or low-coupon bonds; more favorably affected by rising interest rates
D) high-coupon bonds; completely insulated from rising interest rates

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