Which of the following are true about the interest-rate sensitivity of bonds? I) Bond prices and yields are inversely re

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answerhappygod
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Which of the following are true about the interest-rate sensitivity of bonds? I) Bond prices and yields are inversely re

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Which of the following
are true about the interest-rate
sensitivity of bonds?
I) Bond prices and yields are
inversely related.
II) Prices of long-term bonds tend to
be more sensitive to interest rate changes than prices of
short-term bonds.
III) Interest-rate risk is directly
related to the bond's coupon rate.
IV) The sensitivity of a bond's price
to a change in its yield to maturity is inversely related to the
yield to maturity at which the bond is currently selling.
a. I and II
b. I and III
c. I, II, and IV
d. II, III, and IV
e. I, II, III and IV
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