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:

Democratic Candidate

An individual seeking nomination or election within the Democratic Party, one of the two major political parties in the United States.

Republican Candidate

A person seeking election or nomination for office as a representative of the Republican Party.

Type II Error

A statistical error that occurs when a false null hypothesis is not rejected, meaning a real effect is missed.

Nutritive

Related to nourishment; substances that provide essential nutrients to support life and health.