Kizspy | Question: 6 (Choose 1 answer)
Which of the following statements is true?
A. A) Long-term bonds have lower price volatility than short-term bonds of similar risk.
B. B) As interest rates decline, the prices of bonds rise and as interest rates rise, the prices of bonds decline.
C. C) All other things being equal, short-term bonds are riskier than long-term bonds.
D. D) Interest rate risk decreases as maturity increases.