Change due to changes in the interest rate

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Reference no: EM131059310

The risk that the price of a bond will change due to changes in the interest rate is greater:

The longer the time to maturity and the lower the coupon rate

The shorter the time to maturity and the higher the coupon rate

Neither time to maturity or the size of the coupon effects interest rate risk on a bond

Corporate bonds are shown on the balance sheet as:

Retained Earnings

Equity

Debt

Reference no: EM131059310

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