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:

Investment Firm

A business or financial institution that invests the pooled capital of investors in financial securities, typically offering a range of investment products and services.

Commission

A group designated to perform a specific function or investigation, or a fee paid to an agent for services rendered.

Undue Influence

A situation where an individual is able to persuade another's decisions due to the relationship between the two, often leading to unfair outcomes.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by the parties involved in order to be enforceable.