Which of the Following Statements About Bonds Is True

question 35

Multiple Choice

Which of the following statements about bonds is true?

• A) The market value of a bond moves in the opposite direction of market interest rates.
• B) As the maturity date of a bond approaches, the market value of a bond will become more volatile.
• 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.

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Definitions:

Bioaccumulation

The buildup of a persistent toxic substance, such as certain pesticides, in an organism’s body.

DDT

Dichloro-Diphenyl-Trichloroethane, a synthetic insecticide used historically for malaria and pest control, now banned in many countries due to environmental impact.

Nitrogen Cycle

A biogeochemical cycle that describes the transformations of nitrogen and nitrogen-containing compounds in nature.

Nitrogen Fixation

The process by which nitrogen gas from the atmosphere is converted into ammonia by certain bacteria, making nitrogen available to living organisms.