Which of the Following Statements Is True

question 61

Multiple Choice

Which of the following statements is true?

• A) Long-term bonds have lower price volatility than short-term bonds of similar risk.
• B) As interest rates decline, the prices of bonds rise and as interest rates rise, the prices of bonds decline.
• C) All other things being equal, short-term bonds are riskier than long-term bonds.
• D) Interest rate risk decreases as maturity increases.

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Definitions:

Trichomes

Small hair-like appendages on plants that serve various functions including defense against insects and reducing water loss.

Collenchyma

A type of plant tissue characterized by its living, elongated cells with unevenly thickened walls that provide structural support.

Xylem

A type of vascular tissue in plants that transports water and dissolved nutrients from the roots to the rest of the plant.

Maturation

The process of becoming mature, involving growth and development in organisms or the aging of beverages and cheeses to enhance flavor.