Assuming all else is constant, which of the following statements is correct?
A. Other things held constant, a 20-year zero coupon bond has more re-investment risk than a 20-year coupon bond.
B. Other things held constant, for any given maturity, a 1.0% point decrease in the market interest rate would cause a smaller dollar capital gain than the capital loss stemming from a 1.0% point increase in the interest rate.
C. From a corporate borrower's point of view, interest paid on bonds is not tax-deductible.
D. Other things held constant, price sensitivity as measured by the percentage change in price due to a given change in the required rate of return decreases as a bond's maturity increases.
E. For a bond of any maturity, a 1.0% point increase in the market interest rate (rd) causes a larger dollar capital loss than the capital gain stemming from a 1.0% point decrease in the interest rate.