Which of the Following Statements About Bonds Is True

question 32

Multiple Choice

Which of the following statements about bonds is true?

• A)If market interest rates are below a bond's coupon interest rate,then the bond will sell above its face value.
• 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)As the maturity date of a bond approaches,the market value of a bond will become more volatile.

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Definitions:

Income

The financial return or earnings from work, investments, or any other sources, usually measured over a specific period.

Disparity

A great difference or inequality between two or more things, often relating to unfair treatment or outcomes in society.

Upper-upper Class

The upper-upper class refers to the highest echelon of society based on wealth, familial heritage, and social standing, often characterized by substantial influence and resources.

Non-Hispanic

A term used to refer to individuals or populations that do not identify as Hispanic or Latino, often used in demographic and statistical contexts for clarity.