Which of the following is true regarding fluctuations in the prices of bonds?
A) When interest rates go up, bond prices go up.
B) When interest rates go down, you want to purchase very short-term bonds.
C) As interest rates rise, investors demand a higher return on bonds.
D) all of the above
E) only A and B
Answer: C
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Indicate whether the statement is true or false
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Indicate whether the statement is true or false
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