Business, 10.10.2019 06:30 AM28

Assuming all else is constant, which of the following statements is correct? a. price sensitivity as measured by the percentage change in price due to a given change in the required rate of return decreases as a bond's maturity increases. b. from a corporate borrower's point of view, interest paid on bonds is not tax-deductible. c. for a bond of any maturity, a 1.0 percentage point increase in the market interest rate (rd) causes a larger dollar capital loss than the capital gain stemming from a 1.0 percentage point decrease in the interest rate. d. for any given maturity, a 1.0 percentage point decrease in the market interest rate would cause a smaller dollar capital gain than the capital loss stemming from a 1.0 percentage point increase in the interest rate. e. a 20-year zero coupon bond has more reinvestment rate risk than a 20-year coupon bond.

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Assuming all else is constant, which of the following statements is correct? a. price sensitivity a...