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18. Interest rates have been rising sharply in recent months. your customer wants to know why his bond mutual funds have been declining in value, since mutual fund shares are equity instruments. You explain thatA. Mutual funds of all sorts are just as interest rate sensitive as bondsB. Since the underlying bonds are declining in value, the fund shares decline along with themC. Since interest rates do not affect equity instruments, it must be other market forces that are affecting his sharesD. Market prices are simply unpredictable

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