Which of the Following Statements Relating to Yield Volatility Is

question 25

Multiple Choice

Which of the following statements relating to yield volatility is most accurate? if the term structure of yield volatility is downward sloping, then:

• A) short-term rates are higher than long-term rates.
• B) long-term yields are more stable than short-term yields.
• C) short-term bonds will always experience greater price fluctuation than long-term bonds.

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