Which of the Following Statements Is CORRECT

question 46

Multiple Choice

Which of the following statements is CORRECT?

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

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Definitions:

Standard Form

A recognized format for structuring mathematical, logical, or other types of statements, simplifying communication and understanding.

Form E

In Aristotelian logic, Form E represents a categorical proposition of the form "No S is P," where S is the subject and P is the predicate, indicating that no members of S are members of P.

Subject

In grammar, the part of a sentence or clause that indicates what the sentence is about or who performs the action.

Predicate

In logic and grammar, the part of a sentence or formula that expresses what is said about the subject.