Which of the Following Statements About Bonds Is True

question 71

Multiple Choice

Which of the following statements about bonds is true?

• A) As the maturity date of a bond approaches, the market value of a bond will become more volatile.
• 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) If market interest rates are above a bond's coupon interest rate, then the bond will sell below its par value.

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Definitions:

Companionship

The feeling or state of having a friend or partner to share one's activities, life, or experiences with.

Widows

Women who have lost their spouses through death and have not remarried.

Widowers

Males who are widowed and have not entered into another marriage.

Congenial Siblings

Brothers and sisters who share a close, friendly, and amicable relationship, often characterized by mutual support and understanding.