All else being equal an increase in the yield to maturity of

Question

All else being equal, an increase in the yield to maturity of a bond will result in:

a. an increase in the market price of the bond.

b. a greater interest rate price risk on a long-term bond than on a short-term bond.

c. an increase in the maturity value of the bond.

d. a decrease in the rate of return at which the cash flows from the portfolios can be reinvested.

e. a lower risk of suffering losses in the market values of the bond portfolios.

Answer

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