Which of the Following Is NOT True Regarding Bond Maturities

question 22

Multiple Choice

Which of the following is NOT true regarding bond maturities?

• A)Short maturities sacrifice price appreciation opportunities.
• B)Longer maturities have greater price fluctuations.
• C)Short maturities serve to protect the investor when rates are rising.
• D)Long term interest rates are more volatile than short term interest rates.

---

Definitions:

Social Value

The importance or benefit that something has to society, which might not be reflected in its market price, such as education or environmental protection.

Resources

Assets, materials, and inputs used to produce goods and services, including natural resources, human resources, and capital.

Opportunity Cost

The cost of choosing one option over another, representing the value of the foregone alternative.

Marginal Cost

The financial outlay involved in producing an additional unit of a product or service.