Which of the Following Statements About Bonds Is True

question 61

Multiple Choice

Which of the following statements about bonds is true?

• A)If market interest rates are below a bond's coupon interest rate,then the bond will sell above its par value.
• B)Long-term bonds have less interest rate risk than do short-term bonds.
• C)Bond prices move in the same direction as market interest rates.
• D)As the maturity date of a bond approaches,the market value of a bond will become more volatile.
• E)None of the above.

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Definitions:

Purity

The state or quality of being clean, free from contaminants, or morally untarnished.

Variation in Contrast

Differences in the degree of distinction between two or more elements, often used in visual and language analysis.

Variation in Brightness

Differences in the lightness or luminance perceived in visual stimuli, which can affect contrast and visibility.

Variation in Hue

Differences in color perception, which can be attributed to changes in wavelength, saturation, and lightness.