Which of the Following Statements About Bonds Is True

question 52

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 face value.

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Definitions:

Special Warranty

A warranty in a deed that the grantor only guarantees against title defects that occurred during their ownership of the property.

General Warranty

A comprehensive guarantee that a seller gives to a buyer, covering the title and condition of property or goods.

Transfer by Deed

The act of conveying real estate ownership through a legal document known as a deed.

Deed

A legal document that represents the ownership of real property or real estate and is used to transfer title from one party to another.