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Which Combination of Bond Characteristics Causes a Bond to Be

Question 11

Multiple Choice

Which combination of bond characteristics causes a bond to be most sensitive to changes in market interest rates?
I. low coupon rates
II. high coupon rates
III. short time to maturity
IV. long time to maturity


A) III only
B) I and III only
C) I and IV only
D) II and III only
E) II and IV only

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