Which of the Following Statements Is CORRECT

question 17

Multiple Choice

Which of the following statements is CORRECT?

• A) One advantage of a zero coupon Treasury bond is that no one who owns the bond has to pay any taxes on it until it matures or is sold.
• B) Long-term bonds have less price risk but more reinvestment risk than short-term bonds.
• C) If interest rates increase,all bond prices will increase,but the increase will be greater for bonds that have less price risk.
• D) Relative to a coupon-bearing bond with the same maturity,a zero coupon bond has more price risk but less reinvestment risk.
• E) Long-term bonds have less price risk and also less reinvestment risk than short-term bonds.

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Definitions:

Personal Property

Assets that include tangible objects such as furniture and vehicles, and intangible rights, excluding real estate.

Running at Large

Refers to domestic animals roaming freely in public spaces without any supervision or restraint, often against local regulations.

Residential Swimming Pools

Custom or prefabricated pools installed at private homes for personal or family recreation.

Enclosed Fence

A barrier surrounding an area to prevent entry or exit, typically made from materials like wood, metal, or wire.