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.

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Definitions:

Concrete Operational

A stage in Jean Piaget’s theory of cognitive development during which children gain the ability to think logically about concrete events and objects.

Deferred Imitation

The ability to replicate a behavior observed at an earlier time, even in the absence of the immediate presence of the original stimulus.

Symbolic Play

A type of play in which children use objects, actions, or ideas to represent other objects, actions, or ideas, as part of their cognitive development.

Sensorimotor Stage

Piaget’s first stage in cognitive development, in which infants learn through senses and motor activity.