What Will Happen to the Interest on a Bond as the Bond's

question 11

Multiple Choice

What will happen to the interest on a bond as the bond's term increases?

• A) The bond will pay less interest because it has less risk.
• B) The bond will pay less interest because it has more risk.
• C) The bond will pay more interest because it has more risk.
• D) The bond will pay more interest because it has less risk.

---

Definitions:

Request For Action

A directive or plea issued to prompt someone to take a specific action or make a decision.

Expression Of Appreciation

A statement or gesture showing gratitude or acknowledgment of others' efforts or achievements.

Straightforward Statement

A clear, direct, and unambiguous declaration that conveys information or expresses a point without complexity.

Neutral Buffer

A technique used in communication to soften the impact of negative news or to ease into a conversation.