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Which of the following statements about how the features of a bond impact interest rate risk is NOT correct? A. An inverse relationship between interest rates and bond prices means that the greater the change in interest rates, the less the change in fixed-coupon bond prices. B. A lower-coupon bond is more sensitive to interest rate movements than a higher-coupon bond (all else equal). C. Bond price movements depend upon the direction and magnitude of changes in interest rates. |