Which of the following are generally true of all bonds? Group of answer choices a) Prices and returns for long-term bonds are more volatile than those for shorter-term bonds. b)Even though a bond has a substantial initial interest rate, its return can turn out to be negative if interest rates rise. c) The longer a bond's maturity, the lower is the rate of return that occurs as a result of the increase in the interest rate. d) All of the above are true. e) Only A and B of the above are true.

Which of the following are generally true of all bonds? Group of answer choices a) Prices and returns for long-term bonds are more volatile than those for shorter-term bonds. b)Even though a bond has a substantial initial interest rate, its return can turn out to be negative if interest rates rise. c) The longer a bond's maturity, the lower is the rate of return that occurs as a result of the increase in the interest rate. d) All of the above are true. e) Only A and B of the above are true.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 2Q: Short-term interest rates are more volatile than long-term interest rates, so short-term bond prices...

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