Long-Term Bonds Are

question 187

Multiple Choice

Long-term bonds are

• A)riskier than short-term bonds, and so interest rates on long-term bonds are usually lower than interest rates on short-term bonds.
• B)riskier than short-term bonds, and so interest rates on long-term bonds are usually higher than interest rates on short-term bonds.
• C)less risky than short-term bonds, and so interest rates on long-term bonds are usually lower than interest rates on short-term bonds.
• D)less risky than short-term bonds, and so interest rates on long-term bonds are usually higher than interest rates on short-term bonds.

---

Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold before deducting overhead, payroll, taxation, and interest payments.

Option Contract

A financial contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specified date.

At The Money

Describes an option where the current price of the underlying asset is equal to the strike price of the option.

Dramatic Decline

A rapid and significant drop in the value or price of an asset or market.