Which of the Following Statements About Bonds Is True

question 84

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.

---

Definitions:

Egocentrism

A psychological stage where an individual has difficulty understanding the perspectives of others, often seen in early childhood development.

Attention Deficit Hyperactivity Disorder (ADHD)

A neurodevelopmental disorder characterized by patterns of inattention, hyperactivity, and impulsivity that are more frequent and severe than typically observed in individuals at a comparable level of development.

Generalized Anxiety Disorder (GAD)

A mental health disorder characterized by chronic and excessive worry about various aspects of life, often to the extent that it interferes with daily activities.

Post-Traumatic Stress Disorder (PTSD)

A mental health condition triggered by experiencing or witnessing a traumatic event, characterized by flashbacks, nightmares, and severe anxiety.