Which of the Following Statements Is Correct

question 109

Multiple Choice

Which of the following statements is correct?

• A)Long-term bonds have more reinvestment rate risk than short-term bonds.
• B)Long-term bonds have more interest rate risk than short-term bonds.
• C)Short-term bonds with high coupons have high interest rate risk.
• D)Zero-coupon bonds do not have interest rate risk.

---

Definitions:

Bailor

The person who transfers personal property under a contract of bailment.

Borne

Carried or transported by the thing specified; often used to indicate who bears the responsibility for paying costs or charges.

Chattel

Personal property that can be moved from one place to another, such as furniture or vehicles.

Intangible Personal Property

Property that does not have a physical presence but holds value, such as patents, copyrights, trademarks, and financial assets.