Which of the Following Statements About Bonds Is True

question 71

Multiple Choice

Which of the following statements about bonds is true?

• A) As the maturity date of a bond approaches, the market value of a bond will become more volatile.
• B) Long-term bonds have less interest rate risk than do short-term bonds.
• C) Bond prices move in the same direction as market interest rates.
• D) If market interest rates are above a bond's coupon interest rate, then the bond will sell below its par value.