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a. 70.8%
b. 53.3%
c. 1.41%
d. 6.2 times
14.
The statement "Bond prices vary inversely with changes in the
market rate of interest" means that if the
a.
market rate of interest increases, the contractual
interest rate will decrease.
b.
contractual interest rate increases, then bond
prices will go down.
c.
will go up.
market rate of interest decreases, then bond prices