Given that short-term interest rates typically fluctuate less than long-term rates,interest rate risk is least for
A) treasury bills.
B) common stock.
C) long-term government bonds.
D) medium-term corporate bonds.

Question

Quizplus · Accepted Answer

Treasury bills, being short-term debt instruments, are less affected by interest rate fluctuations compared to long-term and medium-term bonds. This makes them have the least interest rate risk among the options provided.

Given That Short-Term Interest Rates Typically Fluctuate Less Than Long-Term