Which of the Following Statements Is CORRECT

question 47

Multiple Choice

Which of the following statements is CORRECT?

• A) All else equal, long-term bonds have less interest rate price risk than short-term bonds.
• B) All else equal, low-coupon bonds have less interest rate price risk than high-coupon bonds.
• C) All else equal, short-term bonds have less reinvestment rate risk than long-term bonds.
• D) All else equal, long-term bonds have less reinvestment rate risk than short-term bonds.
• E) All else equal, high-coupon bonds have less reinvestment rate risk than low-coupon bonds.

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Definitions:

Eco-Tourism

Responsible travel to natural areas that conserves the environment, sustains the well-being of the local people, and involves interpretation and education.

Extinction

The process by which a species, genus, or family of organisms ceases to exist through death or inability to reproduce in its natural environment.

Values

Values are the principles or standards of behavior that are considered important in life or in a particular decision-making process.

Transaction

An economic event that involves the transfer of goods, services, or funds between two or more parties.