Which of the Following Statements About Bonds Is True

question 15

Multiple Choice

Which of the following statements about bonds is true?

• A) Bond prices move in the same direction as market interest rates.
• B) If market interest rates change, long-term bonds will fluctuate more in value than short-term bonds.
• C) Long-term bonds are less risky than short-term bonds.
• D) If market interest rates are higher than a bond's coupon interest rate, then the bond will sell above its par value.
• E) None of the above.

---

Definitions:

Ethnicity

A category of people who identify with each other based on shared attributes such as cultural, national, tribal, religious, linguistic, or ancestral heritage.

Sociological Factors

These refer to elements within society, including social structures, institutions, and dynamics, that influence individual and group behaviors, patterns, and outcomes.

Nationality

The legal relationship between an individual and a nation, often determining citizenship and allegiance.

Machiavellianism

A personality trait characterized by manipulation, deceit, and exploitation of others to achieve one's own goals.