Which of the Following Statements Is True

question 100

Multiple Choice

Which of the following statements is true?

• A) As time passes and a bond approaches its maturity date the price will converge to par value plus the final interest payment.
• B) The most important factor having an impact on a bond's price is the current yield on the bond.
• C) Bond prices and interest rates move in the same direction.
• D) Shorter-term bonds are more sensitive to changes in interest rates than longer-term bonds.
• E) None of the above statements is true.

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