Which one of the following statements is true?
A) Interest rate risk decreases as maturity increases.
B) Long-term bonds have lower price volatility than short-term bonds.
C) All other things being equal,short-term bonds are more risky than long-term bonds.
D) As interest rates decline,the prices of bonds rise; and as interest rates rise,the prices of bonds decline.
Correct Answer:
Verified
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