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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