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Which of the Following Statements Regarding Bond Price and Interest

Question 73

Multiple Choice

Which of the following statements regarding bond price and interest rates is true?


A) The longer the time to maturity, the greater the percentage decline in bond value for a given rise in interest rates
B) The longer the time to maturity, the greater the percentage decline in bond value for a given decline in interest rates
C) The longer the time to maturity, the smaller the percentage decline in bond value for a given rise in interest rates
D) The longer the time to maturity, the smaller the percentage rise in bond value for a given rise in interest rates

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