Which of the Following Statements Is True Regarding Investments in Bonds

question 24

Multiple Choice

Which of the following statements is true regarding investments in bonds?

• A)shorter maturities should return more than longer maturities,in general
• B)Treasury bonds should return more than corporate bonds of the same maturity
• C)longer maturities should return more than shorter maturities,in general
• D)lower-rated issues should return less than higher rated issues at maturity.

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Definitions:

Compensate

To provide something, usually money, in recognition of loss, suffering, or damage experienced by an individual or entity.

Future Harms

Potential damage or adverse outcomes that may occur in the future as a result of current actions or decisions.

Intentional Tort

A wrongful act deliberately committed with the intent to cause harm to another, leading to civil liability.

Desert

A barren area of land where little precipitation occurs and living conditions are hostile for plant and animal life.