If interest rates in general rise,________
A. the prices of existing bonds rise
B. the prices of existing bonds fall
C. the prices of matured bonds rise
D. the prices of matured bonds fall
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Bonds never sell for a premium over their principal value. ()
Since bonds pay a fixed amount of interest, their prices do not fluctuate. ()
One difference between stocks and bonds is that one issuer may issue different types of bonds, but only one type of common stock. ()
When we estimate the bond value, there are four necessary inputs: coupon payments, interest rate, principal and maturity. ()