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Question
Which of the following statements is true?a. A short-term bond and a long-term bond provides the same premium.
b. Investors in short-term bonds earn higher premiums than investors in long-term bonds.
c. A change in the interest rates of bonds affect the prices of long-term bonds more than the prices of short- term bonds.
d. A change in the interest rates of bonds affect the prices of short-term bonds more than the prices of long- term bonds.
Answer
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