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:

Unreasonably Dangerous

A legal standard used to describe product defects that pose a risk of harm to the consumer or user that is beyond what would be contemplated by the ordinary consumer, with knowledge common to the community.

Strict Liability

A legal standard that holds parties responsible for damages or harm caused by their actions, regardless of fault or intent.

Unreasonably Unsafe

Describes a condition or product that poses a significant risk of harm to people or property beyond what would be considered reasonable.

Doctrine of Unconscionability

A legal principle that contracts with terms that are excessively unfair or oppressive can be found invalid or modified by a court.