How Does the Risk of Long-Term Bonds Compare with Short-Term

Multiple Choice

How does the risk of long-term bonds compare with short-term bonds?

A) Long-term bonds are generally less risky than short-term bonds and so pay higher interest.
B) Long-term bonds are generally less risky than short-term bonds and so pay lower interest.
C) Long-term bonds are generally more risky than short-term bonds and so pay higher interest.
D) Long-term bonds are generally more risky than short-term bonds and so pay lower interest.