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Which of the Following Statements Regarding Bonds and Inflation Risk

Question 72

Multiple Choice

Which of the following statements regarding bonds and inflation risk is true?


A) Bond investors will require higher yields on bonds if inflation rises.
B) Rising inflation will generally cause bond prices to also rise.
C) Bonds are less influenced by inflation risk than are common stocks.
D) Long-term bonds have less inflation risk than short-term bonds.

Correct Answer:

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