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    Question

    The bonds prices _____ with increase in interest

    rates.
    A Increase Correct Answer Incorrect Answer
    B Decrease Correct Answer Incorrect Answer
    C First increases and then decrease Correct Answer Incorrect Answer
    D First decrease but later increase Correct Answer Incorrect Answer
    E Are unaffected Correct Answer Incorrect Answer

    Solution

    Bond prices and interest rates are inversely related.

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