WHICH OF THE FOLLOWING STATEMENTS IS LEAST ACCURATE REGARDING THE...

88. Which of the following statements is least accurate regarding the factors that affect the interest rate

risk characteristics of an option-free bond?

A. The higher the yield, the greater the bond's price sensitivity to changes in interest rates.

B. The lower the coupon rate, the greater the bond's price sensitivity to changes in interest rates.

C. The longer the bond's maturity, the greater the bond's price sensitivity to changes in interest

rates.

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