Which of the Following Statements About Bonds Is True

question 100

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.

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Definitions:

Strange Situation

A procedure developed by Mary Ainsworth in the 1970s to observe attachment relationships between a caregiver and child.

Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact.

Prenatal Development

The process of growth and development within the womb from conception to birth.

Stages

Distinct phases within a development process or sequence of events through which individuals or systems pass.