Which of the Following Statements About Bonds Is True

question 49

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 face value.
• E)None of the above.

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Definitions:

Downsizing

A business strategy involving the reduction of a company's workforce to improve its efficiency and reduce costs.

Countercurrent Exchange

A mechanism by which fluids flowing in opposite directions exchange properties, optimizing heat or mass transfer.

Gas Exchange Efficiency

The effectiveness with which an organism exchanges oxygen and carbon dioxide with its environment, crucial for respiration.

Capillaries

The smallest blood vessels in the body's circulatory system, responsible for the exchange of water, oxygen, carbon dioxide, and many other nutrient and waste substances between blood and surrounding tissues.