In Terms of Riskiness, How Do Long-Term Bonds and Short-Term

question 73

Multiple Choice

In terms of riskiness, how do long-term bonds and short-term bonds compare?

• A) Short-term bonds are more risky and so pay higher interest.
• B) Short-term bonds are less risky and so pay lower interest.
• C) Short-term bonds are less risky and so pay higher interest.
• D) Short-term bonds have about the same degree of risk and so pay about the same interest.