If market interest rates decrease if market interest rates


1. If market interest rates increases:

high coupon bonds will decline in value more than low coupon bonds.

high coupon bonds will rise in value more than low coupon bonds.

low coupon bonds will rise in value more than high coupon bonds.

low coupon bonds will decline in value more than high coupon bonds.

2. If market interest rates decrease:

high coupon bonds will decline in value more than low coupon bonds.

high coupon bonds will rise in value more than low coupon bonds.

low coupon bonds will decline in value more than high coupon bonds.

low coupon bonds will rise in value more than high coupon bonds.

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Financial Management: If market interest rates decrease if market interest rates
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