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There are two bonds with the same face value $1,000. One maturity is three years, while the other one is 5 years. Both bonds have the annual coupon payments $50. Which of the following statement is NOT correct?


A、Forbothbonds,higherinterestratescausethebondtosellforadiscount.;
B、Forbothbonds,lowerinterestratescausethebondtosellforapremium.;
C、Whentheinterestrateincreases,thepriceofthe5-yearbondishigherthanthepriceofthe3-yearbond.;
D、Whentheinterestratedecreases,theincreaseofpricesisgreaterforthe5-yearbondthanforthe3-yearbond.

发布时间:2025-11-15 21:50:44
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答案:When the interest rate increases, the price of the 5-year bond is higher than the price of the 3-year bond.
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