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:

Megacity

A metropolitan area with a total population in excess of ten million people.

Demographers

Experts who study the statistical characteristics of human populations, such as births, deaths, ages, and migrations, to understand trends and predict future shifts.

Net Migration Rates

A statistic that calculates the difference between the number of individuals entering a country (immigrants) and leaving a country (emigrants) per 1,000 inhabitants in a given year.

Migration

The movement of people from one place to another with the intention of settling temporarily or permanently in the new location.