All else being equal, an increase in the yield to maturity of a bond will result in:
A. an increase in the market price of the bond.
B. a greater interest rate price risk on a long-term bond than on a short-term bond.
C. an increase in the maturity value of the bond.
D. a decrease in the rate of return at which the cash flows from the portfolios can be reinvested.
E. a lower risk of suffering losses in the market values of the bond portfolios.
Answer: B
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