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【单选题】
Suppose a bond promises to pay its holder $100 a year forever. The interest rate on the bond rises from 4 percent to 5 percent. The price of the bondA.
falls from $2,500 to $2,000.
B.
does not change because it is not affected by the interest rate.
C.
falls from $25,000 to $20,000.
D.
rises from $2,000 to $2,500.
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