Which of the Following Statements Is True Regarding Investments in Bonds

question 54

Multiple Choice

Which of the following statements is true regarding investments in bonds?

• A) Shorter maturity bonds generally return more than longer maturity bonds.
• B) Treasury bonds generally return more than corporate bonds of the same maturity.
• C) Longer maturity bonds generally return more than shorter maturity bonds.
• D) Higher-rated bonds generally return more than lower-rated bonds.

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Definitions:

Variable Annuity

An insurance product that provides future payments to the holder, with the payouts varying depending on the performance of the investment options chosen.

Defined Contribution

A type of retirement plan in which the amount contributed to the plan is specified, but the future benefit amount is not guaranteed, depending on investment returns.

Investment Performance

The measure of how an investment has grown or declined in value, considering both capital gains and income, over a specific period.

CFA

CFA stands for Chartered Financial Analyst, a professional designation given by the CFA Institute that measures the competence and integrity of financial analysts.